Military, Civil Servants, and Educators to Receive Higher Pensions Starting Next Year! Executive Yuan Approves 'Civil Servant Pension Adjustment,' Certain Individuals to Receive Extra $2,000 Monthly

The Executive Yuan officially approved today (20) that starting next year (2027), monthly retirement pensions for retired military, civil servants, and educators will be increased by 5.89%. All necessary funding has already been fully included in next year’s overall budget.

Combined with the previously implemented July increase in professional and supervisory allowances, as well as the across-the-board 4% salary raise for currently serving military, civil servants, and educators in 2027, the total government budget for adjusting compensation for both current and retired personnel amounts to NT$79.9 billion. The Executive Yuan emphasized that when allowances are factored in, the actual overall salary increase for current employees can reach up to 11.56%.

Why is the retirement pension being raised by 5.89%? Legal and Inflation Conditions Explained

According to the 'Retirement and Pension Act for Military, Civil Servants, and Educators,' adjustments must be made when "the cumulative growth rate of the Consumer Price Index (CPI) published by the Directorate-General of Budget, Accounting and Statistics reaches ±5%," or when a review is conducted at least every four years.

The Executive Yuan explained that since the last pension adjustment in 2024, the cumulative CPI increase announced in May 2026 has officially surpassed the 5% threshold, meeting the legal requirement for an adjustment. Therefore, based on the latest cumulative inflation rate, the Executive Yuan finalized a 5.89% increase.

Is the 5.89% pension increase higher than the 4% salary raise for current employees?

Many citizens have questioned why the pension adjustment rate for retired military, civil servants, and educators (5.89%) is higher than the across-the-board salary increase for current staff (4%). In response, the Executive Yuan clarified that one should not compare only the 4% base raise.

Currently serving military, civil servants, and educators will not only receive the 4% across-the-board raise in 2027 but also benefit from the fixed NT$2,000 increase in both 'professional allowances' and 'supervisory duty allowances' that took effect in July this year. As a result, the actual comprehensive salary growth for current employees significantly exceeds that of retirees:

- Non-supervisory current employees: With the increase in professional allowances, the actual overall salary increase ranges from 5.88% to 9.98%. - Supervisory current employees: With both supervisory and professional allowance increases, the actual overall salary increase ranges from 6.39% to 11.56%.

Therefore, the overall compensation improvement for current military, civil servants, and educators—whether supervisory or non-supervisory—exceeds the 5.89% inflation-based adjustment for retirees, effectively balancing inflation impacts with the need to retain current talent.