Latest Update: Grade-Wise Salary Increasing Update In Upcoming Budget 2025-26

Latest Government Employees News – Budget 2025-26 Relief Package

As the Budget 2025–26 is just around the corner, government employees across Pakistan are eagerly waiting for positive developments — and finally, there’s some good news. In light of the country’s ongoing inflation and rising cost of living, the federal government is planning a significant salary increase for public sector workers in the upcoming budget. This step aims to provide much-needed relief, especially to low-income employees who’ve been struggling to make ends meet. No

According to reliable sources, the federal government is working on a relief package that includes a 30% disparity allowance for Grade 1 to 16 employees and a 15% salary increase for Grade 17 to 22 officers. This proposal is currently under serious consideration and is expected to be part of the official announcement during the budget speech scheduled for June 10, 2025. This is part of the broader plan by the government to support civil servants in dealing with everyday financial pressures.

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In addition to this grade-wise increase, the government is also considering a 10% increase in both salaries and pensions for all federal government employees and retirees. This decision, if finalized, will benefit thousands of workers and pensioners across the country. It’s a step that not only addresses short-term needs but could also have long-term benefits. One of the key discussions on the table is the merging of the 2022 ad hoc relief allowance into basic pay, which would lead to a permanent bump in salaries. This integration is crucial because it would also impact future pension calculations and raise the overall salary structure for upcoming years.

Grade-Wise Salary Increasing Update In Upcoming Budget

Meanwhile, another major financial update relates to the State Bank’s expected reduction in its policy interest rate. This move could save the government an estimated Rs1,300 billion on loan and interest repayments. That’s a massive amount, which the government could use to improve salaries, fund development projects, or manage debt better. At the same time, it shows the authorities are trying to strike a balance between giving relief to employees and managing economic challenges.

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However, the budget isn’t all about salary increases and benefits. To manage the growing fiscal deficit, the government is also expected to implement strict austerity measures. Among these is a potential ban on the purchase of new vehicles by all federal ministries and departments. These ministries will also be asked to cut down their fuel and electricity usage significantly. These steps are aimed at reducing unnecessary government expenditure and improving fiscal discipline.

Alongside these cost-cutting efforts, there’s also talk of a new carbon levy of Rs2.5 per litre on petroleum products. While this move will help the government raise additional revenue, it is likely to cause a slight increase in petrol and diesel prices. According to estimates, after the carbon tax is added, petrol could rise from Rs253.63 to Rs256.13 per litre, and diesel could jump from Rs254.64 to Rs257.14 per litre. These price hikes, expected in the second half of June 2025, might offset some of the financial relief provided to employees through the budget.

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Despite these challenges, the overall direction of Budget 2025–26 seems to be focused on providing much-needed support to government employees, especially those in the lower grades who are most vulnerable to economic instability. The proposed increases — 30% for Grade 1–16, 15% for Grade 17–22, and 10% across the board for salaries and pensions — offer a strong signal of the government’s commitment to its workforce.

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