Budget 2025-26: The finance minister has announced a 10% salary hike for government employees and a 7% increase in pensions in his budget speech on Tuesday.
Employees in grades 1 through 22 will be eligible for the pay increase.
Additionally, it was determined to give qualified employees a 30% hardship reduction allowance.
Moreover, the minister declared that the defense budget for the fiscal year 2025–2026 will be used to fund a special relief allowance for military leaders and soldiers.
Also, an increase in the special conveyance allowance from Rs4,000 to Rs6,000 per month was announced for special personnel.
A 10% pay raise for government workers and a 7% pension rise were among the suggestions for the Federal Budget 2025–2026 that had previously been accepted by the federal cabinet, which was chaired by Prime Minister Shehbaz Sharif.
According to reports, the meeting also approved the financial bill, which included a number of provisions meant to help the salaried class.
For government workers and retirees, the cabinet has proposed a 10% pay raise and a 7% pension increase, respectively.
In order to choose whether to increase government employee pay by 6%, 10%, or 15% in the next fiscal year’s budget, the federal government was considering three different options.
Many government workers have called on the administration to raise salaries by at least 50% in order to keep pace with the skyrocketing rate of inflation.
Employee groups have warned that if this demand is not met, there may be major protests.
