10pc salary hike for govt employees approved in budget 2025-26
Business
Employees from Grade 1 to 16 are expecting more relief
ISLAMABAD (Dunya News) – A 10 percent increase in salaries and 7 percent hike in pensions of government employees were approved in the federal budget 2025-26.
According to sources, the minimum wage is also expected to be increased. Government employees will receive a 10% salary hike and a 30% allowance. It is also proposed to merge the ad-hoc relief allowance into the basic salary.
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Employees from Grade 1 to 16 are expecting more relief, while a proposal is also under consideration to provide relief to employees from Grade 17 to 22.
For salaried individuals, changes in the income tax slabs are being considered, with a proposal to raise the annual tax exemption limit above Rs. 600,000. The final decision will be made by the Prime Minister in the federal cabinet meeting.
