The Federal Ministry of Finance has approved relief measures for employees retiring on or after 1 July 2025, as stated in a recently issued office memorandum concerning pension matters.
According to the memorandum, all federal pensioners will receive an increase in their pensions on an equal basis. Five ad hoc relief allowances granted between 2011 and 2024 are to be incorporated into pensions, amounting collectively to an increase of up to 70 per cent.
The Ministry of Finance clarified that the baseline pension for government employees shall be treated as the net pension. From the gross pension, the commuted portion shall be deducted, and five ad hoc relief allowances shall then be added. These five prior increases shall thus form part of the net pension of federal government employees.
The ad hoc relief allowances granted were as follows: 15 per cent in 2011, 7.5 per cent in 2015, 15 per cent in 2022, 17.5 per cent in 2023, and 15 per cent in 2024.
