Not Only Active-Duty Military, Civil Servants, and Teachers Get Raises — Retirees’ Pensions Are Also Increasing! Government Reveals Adjustment Rate for Civil Servant Monthly Pensions, Allocates Total Budget of NT$11.4 Billion

The government has made a significant policy adjustment. After the Executive Yuan finalized a compensation enhancement plan for military, civil servants, and teachers in July, active-duty personnel are confirmed to receive a 4% pay raise next year. Now, retired military, civil servants, and teachers are also receiving good news.

According to Liberty Times, due to ongoing changes in the price index, next year’s monthly retirement pensions for retired military, civil servants, and teachers are expected to increase by nearly 6%. The related funding has already been formally included in the central government’s total budget proposal for the coming fiscal year. The Executive Yuan plans to convene a cabinet meeting on the 20th to review and approve the overall budget, after which specific details will be publicly announced. It is estimated that nearly 550,000 retired individuals across Taiwan will benefit.

This proposed adjustment not only significantly impacts the economic lives of retired civil servants but also affects overall government fiscal planning. Both central and local governments have established corresponding budget allocation mechanisms for adjusting compensation for both active and retired personnel to ensure smooth policy implementation and adequate funding.

Why can pensions be adjusted upward? The key lies in a statutory threshold being triggered.

According to regulations under the military, civil servant, and teacher retirement and pension laws, there are clear legal conditions for adjusting monthly pensions. When the cumulative growth rate of the Consumer Price Index (CPI), as published by the central accounting authority, reaches ±5%, relevant agencies must initiate an adjustment. Even if price fluctuations do not meet this threshold, a comprehensive review must be conducted at least once every four years.

The last time military, civil servant, and teacher monthly pensions were raised was in 2024. Since then, the cumulative growth rate of the CPI has surpassed the 5% threshold, fully satisfying the legal standard for initiating an adjustment. Having met these legal conditions, the competent authorities overseeing military, civil servant, and teacher retirement and pension systems have formed a professional evaluation team. They are conducting a comprehensive review and assessment based on three statutory factors: the nation’s overall economic environment, the government’s fiscal capacity, and the preparedness ratio of the retirement and pension fund. Subsequently, they will prepare an evaluation report and a concrete adjustment proposal to be jointly approved and announced by the Executive Yuan and Examination Yuan.

How much will this cost? How will the central and local governments share the financial burden?

To cover this substantial expenditure, funds have already been allocated in the central government’s total budget for the coming fiscal year for both active and retired personnel adjustments. For the monthly retirement pensions of retired military, civil servants, and teachers, an additional budget of NT$11.4 billion has been allocated for next year. This amount will be jointly funded by the central and local governments, with the central government contributing NT$7.4 billion and local governments sharing NT$4 billion.

On the other hand, the planned 4% across-the-board raise for active-duty military, civil servants, and teachers has been allocated a budget of NT$38.3 billion, also shared between central and local governments—NT$17.8 billion from the central government and NT$20.5 billion from local governments. This dual-track adjustment mechanism demonstrates the government’s concrete financial distribution strategy.

How are the adjustment rates calculated for active-duty and retired personnel? Supervisory positions see maximum increases exceeding 11%.

Looking at the details of this adjustment, although the nearly 6% increase in monthly retirement pensions for retired military, civil servants, and teachers appears higher than the 4% across-the-board raise for active-duty personnel, the actual overall compensation improvement must be assessed holistically, including additional allowances. In addition to the upcoming 4% across-the-board raise, active-duty military, civil servants, and teachers have already seen their professional allowances and supervisory position allowances increased by a fixed NT$2,000 since July this year. Once the total budget is approved, supplementary budget allocations will be made to disburse these funds.

Including the July increase in professional allowances, non-supervisory active-duty personnel will experience an actual salary increase ranging from 5.88% to 9.98%. As for supervisory personnel, taking a Grade 5 appointed section chief as an example, when combining all allowances with the across-the-board raise, the highest overall adjustment rate can reach 11.56%. Each rank receives its corresponding compensation adjustment.