The Punjab government has announced a major salary increase for government employees in its latest budget for the year 2025–26. This decision comes as a relief to thousands of civil servants dealing with inflation and rising living costs. The new pay raise includes Adhoc Relief Allowances for active employees and a pension increase for retired staff. In this article, we provide a full summary of the salary raise, who qualifies, and when the increase will be applied.
| Category | Increase Percentage |
| BPS 1–16 Employees | 25% Adhoc Relief on basic pay |
| BPS 17–22 Employees | 20% Adhoc Relief on basic pay |
| Pensioners | 15% monthly pension increase |
| Effective Date | 1st July 2025 |
What’s New in the 2025–26 Punjab Budget?
The 2025–26 Punjab Budget introduced by the provincial government highlights multiple steps to support public employees. The most important announcement is the increase in salaries across all pay scales.
According to the Finance Minister, this raise is meant to ease the financial pressure on employees due to inflation. The decision affects employees working in all government departments including education, police, healthcare, and administration.
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Detailed Salary Increase by Grade
The pay increase will be implemented as an Adhoc Relief Allowance and added to employees’ existing salaries. The structure is:
- 25% increase for government workers in BPS 1 to 16
- 20% increase for officers in BPS 17 to 22
- 15% pension raise for retired government employees
This raise will apply starting 1st July 2025 and will reflect in the August 2025 salary.
Additional Financial Support in Budget 2025
In addition to salary hikes, the Punjab government also included several other benefits in this year’s budget for government servants.
These include:
- House rent allowance revision in urban areas
- Special bonuses for healthcare and law enforcement workers
- Upgradation of certain job positions in technical and support staff categories
- Continued support for widows and pensioners
These efforts are part of a wider plan to strengthen the financial position of public servants in Punjab.
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Reason Behind the Salary Increase
The government stated that the primary reason for this increase is the rising inflation rate that is affecting the lives of public workers. In the past two years, electricity prices, transport fares, and food costs have increased, causing difficulties for families.
The salary raise aims to improve employee satisfaction, reduce stress, and increase work performance in public offices. It also supports the government’s goal to build an efficient and motivated public service.
Who Will Benefit from the New Pay Raise?
This increase is meant for all regular employees of the Punjab government across departments. The following groups are eligible:
- Permanent staff working in BPS 1 to 22
- Retired government employees receiving monthly pensions
- Teachers, police officers, doctors, and clerks
- Technical and support staff in various sectors
Note: Contract-based staff may receive benefits based on departmental approval or policy updates.
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Conclusion
The Punjab Government’s move to increase salaries in the 2025–26 budget is a positive development for public employees. With a 25% raise for lower-grade staff and a 20% raise for officers, this increase helps workers cope with high inflation. Retired pensioners will also enjoy a 15% pension boost. This budget reflects the government’s commitment to supporting its employees and improving the performance of public institutions.
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FAQs
1. When will the salary increase be applied?
The new salary raise will be applied from July 1, 2025.
2. Is the pension increase confirmed?
Yes, all retired Punjab government employees will get a 15% increase in their monthly pensions.
3. Do all BPS employees get the same raise?
No. BPS 1–16 will get a 25% raise, while BPS 17–22 will get a 20% raise.
4. Will contract employees receive the increase too?
Contract workers may get an increase if their department issues a separate notification.