Will Retired Military and Civil Servants' Monthly Pensions Increase? Nearly 6% Raise Expected Next Year, Latest Responses from Examination Yuan and Executive Yuan Revealed

After the Executive Yuan approved a 4% overall salary adjustment for current military, public officials, and educators, recent reports indicate that the Executive Yuan's proposed central government budget for next year may also include a nearly 6% increase in monthly retirement pensions for retired personnel, expected to benefit approximately 550,000 retirees. In response, the Examination Yuan clarified that although funds have already been pre-allocated in the budget, the actual activation of adjustments and the final rate will depend on whether the Consumer Price Index (CPI) growth rate, to be officially announced by the Directorate-General of Budget, Accounting and Statistics (DGBAS) early next month, reaches the 5% threshold.

Why Could Retired Personnel's Monthly Pensions Be Increased?

In the past, military and civil servant monthly pensions were adjusted upward due to inflation—by 2% in 2022 (Year 111) and 4% in 2024 (Year 113). According to amendments to the Public Servants Retirement, Discharge, and Pension Act, which took effect on December 28 last year, monthly retirement pensions must be adjusted when the cumulative growth rate of the Consumer Price Index (CPI) reaches 5%, or at least once every four years, based on the actual growth rate.

Market analysts estimate that since the last adjustment, the cumulative CPI growth has reached the statutory 5% trigger level. As a result, the Executive Yuan has already included funding for a 'nearly 6%' pension increase in next year’s central government budget proposal.

Whether Pensions Are Successfully Raised Depends on CPI Data at This Critical Time

Regarding external speculation, the Examination Yuan emphasized that even though the budget has been preliminarily allocated, the final decision remains uncertain. The official CPI data for this year, to be released by DGBAS early next month, must first confirm whether the cumulative inflation rate has truly exceeded the 5% threshold before any adjustment can be formally initiated and the exact increase percentage finalized.

116th Year Military, Public Officials, and Educators Treatment Enhancement Plan! Current Staff Salary Increases Up to 9.98%

In addition to positive news for retirees, the Executive Yuan has also disclosed details of the '2027 (Year 116) Military, Public Officials, and Educators Treatment Enhancement Plan.' This plan covers military personnel, public officials, educators, technical workers, laborers, and contract employees, with an estimated 720,000 current staff members set to benefit.

Executive Yuan spokesperson Li Hui-zhi stated that the government continues to improve compensation for military and civil servants. Fixed increases of NT$2,000 will be applied to leadership duty allowances and professional allowances, combined with a base salary adjustment of 4%. Depending on rank, the actual salary increase for current personnel will range between 5.88% and 9.98%.

Additionally, the Executive Yuan has approved maximum increases of up to 50% for volunteer service allowances and up to 140% for combat unit allowances, with all related budgets already incorporated into the total budget proposal. The Personnel Administration Bureau further noted that rights protection for military personnel, police, and firefighters will be fully supported by the Ministry of National Defense and the Ministry of the Interior.

Total Budget Stalled in Legislature! Executive Yuan Urges Swift Review Completion

Spokesperson Li Hui-zhi pointed out that discussions regarding the treatment enhancement plan and budget coordination are expected to begin with cross-party consultations in the Legislative Yuan by October at the latest. She also noted that certain allowance policies implemented earlier this year require supplementary budget procedures only after this year’s total budget is reviewed and passed. However, this year’s budget proposal has already been pending in the Legislative Yuan for 343 days without completion, remaining in negotiation. The Executive Yuan hopes the legislature will expedite the review process to prevent both current and upcoming budget proposals from piling up simultaneously, which could negatively impact the rights of military and civil servants and hinder budget execution.