Public pension schemes will rise by 1.7 per cent this year - bringing their total cost to £109 million a year.
The annual review order will be laid before Tynwald during its May sitting.
Treasury says the annual increase is decided by the UK, with the Isle of Man reflecting the changes.
And it says the 1.7 per cent rise will cost an extra £1.77 million each year.
DEFA releases figures on leased land
MNH invites bids to run popular cafe
Fury finally confirms venue for Joshua fight
Quayside road closure extended in Peel
Mars needs MHKs, says space society
Historic replica ship arrives in Douglas
Vandals were flung poo fighting in Jurby
Don't give seals raw deals, says Wildlife Trust