{"id":76972,"date":"2025-06-10T18:42:00","date_gmt":"2025-06-10T13:42:00","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=76972"},"modified":"2025-06-10T19:24:41","modified_gmt":"2025-06-10T14:24:41","slug":"budget-2025-26-govt-announces-10-salary-hike-tax-relief-for-salaried-class","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/budget-2025-26-govt-announces-10-salary-hike-tax-relief-for-salaried-class\/","title":{"rendered":"Budget 2025-26: Govt announces 10% salary, 7% pension hike, Tax relief for salaried class"},"content":{"rendered":"

ISLAMABAD: In a recent development, the federal cabinet<\/a> has <\/span>approved<\/span>\u00a0<\/span>a 10%\u00a0<\/span>raise<\/span>\u00a0in the\u00a0<\/span>salary<\/span>\u00a0<\/span>scales\u00a0<\/span>of government employees and a 7%\u00a0<\/span>raise<\/span>\u00a0in the pensions of retired public servants.<\/span><\/p>\n

\n
Though<\/span>\u00a0<\/span>the cabinet, which\u00a0<\/span>met<\/span>\u00a0on Tuesday, had\u00a0<\/span>broadly<\/span>\u00a0<\/span>nodded<\/span>\u00a0<\/span>through<\/span> the Federation Budget <\/span>for fiscal 2025-26, the <\/span>discussion<\/span>\u00a0<\/span>over<\/span>\u00a0salaries\u00a0<\/span>for<\/span>\u00a0government employees and other\u00a0<\/span>issues<\/span>\u00a0continued.<\/span><\/div>\n<\/div>\n

The Pakistan People’s Party (PPP), a key coalition partner of the Pakistan Muslim League Nawaz<\/a> (PML-N) government, demanded a further increase in salaries, but the Federal Finance Minister Muhammad Aurangzeb said that the government was already providing the maximum possible relief to the common man in the budget.<\/p>\n

The cabinet proposed a 10% increase in the salaries of government employees.<\/p>\n

Prime Minister Shehbaz Sharif\u00a0accepted<\/span>\u00a0<\/span>the\u00a0<\/span>offer<\/span>\u00a0and\u00a0<\/span>negated<\/span>\u00a0the\u00a0<\/span>offer<\/span>\u00a0of a 6%\u00a0<\/span>increase<\/span>,\u00a0<\/span>saying<\/span>\u00a0<\/span>salaries should\u00a0<\/span>increase<\/span>\u00a0<\/span>by 10%.\u00a0<\/span>The\u00a0<\/span>prime minister and his cabinet\u00a0<\/span>colleague<\/span>\u00a0<\/span>ultimately\u00a0<\/span>approved the decision.<\/span><\/p>\n

Tax Relief for Salary Class<\/a><\/h2>\n

According to the Budget 2025-26, the government has ensured to provide tax relief to the salaried class of Pakistan.<\/p>\n

\n
According to the Finance Bill, Salary earners up to Rs 6 lakh are exempted from tax. People earning a salary of Rs 6 lakh to Rs 1.2 lakh will pay 1 percent tax on the amount above Rs 6 lakh, Finance Bill<\/div>\n<\/div>\n

People earning an annual salary of Rs 1.2 lakh to Rs 2.2 lakh will pay a fixed tax of Rs 6,000 and an additional tax of 11 percent. People earning an annual salary of Rs 2.2 lakh to Rs 3.2 lakh will have to pay a fixed tax of Rs 1.16 lakh and an additional tax of 23 percent.<\/p>\n

Additionally, People earning an annual salary of Rs 3.2 lakh to Rs 4.1 lakh will have to pay a fixed tax of Rs 3.46 lakh and an additional tax of 30 percent, the Finance Bill stated.<\/p>\n

Moreover, People earning an annual salary of Rs 4.1 lakh and above will have to pay a fixed tax of Rs 6.16 lakh and an additional tax of 35 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: In a recent development, the federal cabinet has approved\u00a0a 10%\u00a0raise\u00a0in the\u00a0salary\u00a0scales\u00a0of government employees and a 7%\u00a0raise\u00a0in the pensions of retired public servants. Though\u00a0the cabinet, which\u00a0met\u00a0on Tuesday, had\u00a0broadly\u00a0nodded\u00a0through the Federation Budget for fiscal 2025-26, the discussion\u00a0over\u00a0salaries\u00a0for\u00a0government employees and other\u00a0issues\u00a0continued. The Pakistan People’s Party (PPP), a key coalition partner of the Pakistan Muslim League Nawaz (PML-N) […]<\/p>\n","protected":false},"author":9,"featured_media":38368,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[28642,29370,19248],"class_list":["post-76972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-budget-2025-26","tag-salaries-of-govt-employees-increased","tag-salary-increase"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=76972"}],"version-history":[{"count":2,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76972\/revisions"}],"predecessor-version":[{"id":76980,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76972\/revisions\/76980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/38368"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=76972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=76972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=76972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}