Govt proposes 10–15% salary increase in budget 2026-27

ISLAMABAD: The federal government has proposed a 10 to 15 percent increase in salaries in the budget for the fiscal year 2026-27.

Prime Minister Shehbaz Sharif has been consulted on the budget for the next fiscal year, which was discussed in a meeting held at the Prime Minister’s House on Friday.

The meeting discussed the issues of the new fiscal year’s budget, especially PSDP, taxes, and an increase in salaries and pensions.

The Federal Finance Minister briefed Prime Minister Shehbaz Sharif on the important aspects of the budget. According to sources, it is proposed to increase the salaries of government employees by between 10 and 15 percent in proportion to the inflation rate.

However, the Prime Minister has directed that the amount of relief that can be given to employees should be worked out in the light of the expected resources.

According to sources, Prime Minister Shehbaz Sharif will decide on the increase in the salaries of government employees after consulting with allies.