ISLAMABAD: The federal government has proposed an increase of 6.5 percent in salaries of government employees in the upcoming budget, while pensions are likely to be increase between 7.5 to 10 percent, according to sources.
The economic team will brief Prime Minister on the increase of salaries of the employees in high-level meeting chaired by the PM. Possibilities regarding increasing salaries by 10 percent are limited as per the sources.
The Prime Minister will hold final consultations with the cabinet regarding the proposals. The federal cabinet meeting is scheduled to be held at the Parliament House at 04 pm PST.
The federal cabinet will give final approval regarding the salary increase.
Earlier, the Finance Minister Muhammad Aurangzeb will propose the budget 2025-26 to the National Assembly on Tuesday, with a total outlay of Rs17.8 trillion.
Moreover, he will present a copy of the Finance Bill, 2025, which includes the Annual Budget Statement to the Senate.
The Budget 2025-26 summarizes several relief measures for workers, such as a 10% wage rise for government employees and a 5% to 7.5% increase in pensions for retired civil servants.
Employees in Grades 1-16 will get a 30% special allowance that will be integrated into their base salary, replacing ad hoc relief.
The Pakistani government’s budget for 2025-26 intends to widen the tax base, combat tax evasion, and improve revenue collection, while offering modest assistance to paid individuals.
