Asia public pension hikes 2026

In late July 2026, two Asian governments announced increases to pension benefits for public‑sector retirees. Indonesia disclosed that, starting 1 January 2026, basic pensions for civil servants will rise by roughly 7 % to 10 %, varying by pension class, to preserve purchasing power amid inflation and support household demand. The reform outlines funding sources and the role of PT Taspen in disbursement.

Two days later, Pakistan’s federal cabinet issued an Office Memorandum raising baseline pensions for civil servants, defence‑estimate beneficiaries, retired armed‑forces personnel and civil armed‑force pensioners by 7 % effective 1 July 2026. The increase applies to pensioners whose baseline amounts were set under Treasury instructions in early 2025, and it also covers family pensions and various pension schemes, while excluding certain special allowances. Both measures aim to improve retirees’ welfare and sustain domestic consumption.