ISLAMABAD: In this era of inflation, where everyone is struggling to fulfill the necessities of life, the federal government has announced good news for its employees.
According to the details, the federal government has approved a 7 percent increase in the salaries and allowances of government employees of Grade 1 to Grade 22.
According to the official documents acquired by ABN News, the federal government has merged the 15% ad hoc allowance and 10% ad hoc allowance into the basic pay of government employees from Grade 1 to 22.
The new pay scale will be effective from 01 July 2026.
Additionally, the government has approved a 50% increase in the conveyance allowance of federal employees. To facilitate employees, the authorities have also announced an executive allowance for officers from Grade 17 to 22.
7% ad hoc relief allowance approved for Balochistan govt employees
Moreover, a seven percent ad hoc relief allowance has been approved for government employees from Grade 1 to 22, which will be implemented from July 1, 2026.
The Balochistan government has approved a 7 percent ad hoc relief allowance for all permanent employees from Grade 1 to Grade 22 to provide financial relief to government employees of the province in the face of severe inflation.
A formal notification of this decision has also been issued by the Balochistan Finance Department, which will be implemented from July 1, 2026.
The notification stated that this relief allowance will be calculated at the rate of 7 percent of the current basic salary of each employee, which means that the amount of the allowance will vary depending on the employee’s grade and current salary.
The Finance Department has clarified that this allowance will come under the ambit of income tax under the prevailing laws and the tax due on it will be deducted at the time of payment of salary.
The notification issued also clarified some important conditions: this ad hoc relief allowance will not become part of the permanent basic salary of the employees, but it will be paid separately by adding it to the monthly salary.
This 7 percent allowance will not be included in the calculation of pension, gratuity or other benefits at the time of retirement; pension will be paid to the employees according to their actual basic salary.
Employees on extraordinary leave will not be entitled to this allowance during the leave; however, after returning to duty, their allowance will be restored as per the rules.
Following this decision of the provincial government, instructions have been issued to all relevant government departments and account officers to immediately implement the new orders.
During the preparation of salaries, the authorities will ensure transparent payment of the allowance by keeping in mind the grade, running basic salary, tax deductions, and leave records of each employee.
