The federal government has ordered a 10 percent rise in salaries of its employees and workers engaged in the armed forces and civil armed forces, sources reported.
The federal government in budget 2025-26 had decided to raise salaries of government employees, whereas pensions were increased by 10 percent.
The Ministry of Finance has given an official notification as the decision will also be implemented for employees who are employed on contract.
Moreover, the Ministry of Finance issued a 30 percent disparity allowance notification, which will favor those employees who were earlier not provided with this allowance.
The salary increase and disparity allowance will both become effective from July 1, 2025, according to the notification.
Earlier, the government also announced the income tax slabs of salaried class as people who earn up to Rs600,000 a year will be fully exempt from income tax in the budget 2025-26.
At the second slab, people who earn between Rs600,001 and Rs1.2 million per year will be charged 1% income tax over the amount above Rs600,000.
In the third slab, those earning between Rs1.2 million and Rs2.2 million per annum will pay a fixed amount of Rs6,000 plus 11% tax on the excess over Rs12 million.
Furthermore, in the fourth slab (Rs2.2 million to Rs3.2 million), there will be a fixed amount of Rs116,000 plus 23% tax on the excess over Rs2.2 million.
In the fifth slab, for incomes between Rs3.2 million and Rs4.1 million per annum, the new tax is a fixed amount of Rs346,000 and 30% tax on the excess amount above Rs3.2 million.
The sixth slab is for those earning more than Rs4.1 million a year, who will have to pay a fixed tax of Rs616,000 and 35% income tax on the excess amount above Rs4.1 million.
