Government Employees Pension Fund Announces 2.9% Annual Pension Increase for 2025

Government Employees Pension Fund Announces 2.9% Annual Pension Increase for 2025

PRETORIA, South Africa – The Government Employees Pension Fund (GEPF) has announced that its pensioners will receive an annual pension increase of 2.9%, effective from 1 April 2025

The Fund stated that this decision is aimed at helping its pensioners maintain their purchasing power amidst rising living costs. The 2.9% increase is based on the 2.9% inflation rate for the 12 months ending 30 November 2024. This figure represents 100% of the November 2024 year-on-year Consumer Price Index (CPI). The GEPF highlighted that this rate exceeds the 75% of November year-on-year CPI base increase required by the GEP Law and Rules.

Pensioners who retired on or before 1 April 2024 are set to receive the full 2.9% increase. For those who retired after 1 April 2024, the increase will be proportionate, calculated based on the number of months they have been in receipt of their pension up to 31 March 2025.

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While dedicated to supporting its pensioners, the GEPF also noted that all pension adjustments are subject to the Fund’s financial affordability at the time of review. The Board's decision to grant this increase reflects the GEPF’s commitment to balancing the interests of its pensioners with the Fund’s long-term financial stability. Increases provided beyond the stipulated base provisions of the GEP Law and Rules are carefully considered, with the Board reviewing factors such as the Fund’s investment performance, financial health, and its ability to provide sustainable benefits.

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The GEPF, overseen by its Board of Trustees including Chairperson Mr. F Baleni and Vice Chairperson Mr. E Kekana, affirmed its dedication to serving the best interests of its pensioners, ensuring they continue to enjoy a secure and dignified retirement.

The announcement was issued by the Government Employees Pension Fund. The GEPF is located in Kasteel Park, Pretoria, South Africa.