The federal government has announced a pension reform that will benefit all employees retiring after July 2025 by integrating previous ad-hoc relief allowances into their permanent pension structure. The Ministry of Finance confirmed the move in a memorandum detailing the new calculation method and payment process.
The reform includes the merger of five ad-hoc pension increases granted between 2011 and 2024, amounting to a cumulative 70% boost. The breakdown includes 15% in 2011, 7.5% in 2015, 15% in 2022, 17.5% in 2023, and 15% in 2024.
Under the revised system, pensions will be calculated on the net pension value, while the gross pension — minus the commuted portion — will factor in these integrated allowances.
The government says the measure will ensure all federal pensioners receive equal benefits, remove inconsistencies in pension structures, and provide a more sustainable system for future retirees.