In the Punjab Budget 2025–26, the government has officially announced a salary increase for all government employees. This decision brings relief to thousands of public servants facing rising inflation. The increase applies to all grades and also includes pensioners and allowances. The announcement was made by the Punjab Finance Minister during the annual budget speech. In this article, we explain how much salary is increased, who benefits, and when it starts.
| Key Detail | Information |
|---|---|
| Salary Increase (BPS 1–16) | 25% Adhoc Relief Allowance |
| Salary Increase (BPS 17–22) | 20% Adhoc Relief Allowance |
| Pension Increase | 15% for retired government employees |
| Effective From | 1st July 2025 |
Punjab Budget 2025–26 Salary Raise Announcement
On 13th June 2025, the Punjab Government presented its budget for the new financial year. A major announcement was the increase in salaries for provincial employees. This increase is aimed at helping families manage high costs of living.The increase is part of the Adhoc Relief Allowance, which will be added to the existing basic pay. The budget also includes new benefits for pensioners and special allowances for certain departments.
How Much Salary Increased in 2025?
The government has announced two different slabs for salary increases based on the Basic Pay Scale (BPS):
- BPS 1 to 16: 25% increase in monthly salary
- BPS 17 to 22: 20% increase in monthly salary
- All pensioners: 15% increase in monthly pension
This increase will be added from July 1, 2025, and will reflect in the salaries paid in August 2025.
Special Allowances and Benefits in Budget
In addition to the salary raise, the Punjab Government also introduced other allowances and incentives for public servants.
Key benefits include:
- 15% pension increase for all retired employees
- House Rent Allowance revision for selected areas
- Special allowance for doctors, teachers, and police
- Upgradation of some technical posts in various departments
These changes will be implemented after approval from the Chief Minister and relevant departments.
Why the Government Increased Salaries?
The government explained that the salary raise is part of its policy to fight inflation and support middle-class families. With rising utility bills, food prices, and fuel costs, many employees were finding it hard to manage.The Punjab Finance Minister said the province’s economy is improving, and this increase will improve employee morale and public service delivery.
Who Will Benefit from the Salary Increase?
This increase is for all government employees of Punjab province, whether working in:
- Education
- Health
- Police
- Revenue
- Agriculture
- Other departments under Punjab Government
Pensioners of Punjab government will also benefit from a 15% increase, which will be applied monthly starting July 2025.
Read More:Punjab Govt Announces 10% Salary and 7% Pension Increase in 2025 Budget!
Conclusion
The Punjab Government’s decision to increase salaries in the 2025–26 budget is a welcome move for public employees. A 25% raise for lower-grade workers and a 20% raise for officers will ease financial pressure. Pensioners will also benefit from a 15% hike. If you are a government employee or pensioner, check your department’s HR office or official circular to know the exact update.
Read More:Sindh Budget 2025: Pay and Pension Boost
FAQs
1. When will the increased salary be effective?
The new salary increase will be effective from 1st July 2025.
2. Who is eligible for the 25% salary increase?
All Punjab Government employees in BPS 1 to 16 are eligible for a 25% raise.
3. Are pensioners included in this budget?
Yes, all Punjab government pensioners will get a 15% increase in monthly pension.
4. Will contract employees also get this increase?
The increase applies to regular employees. Contractual employees may receive it if notified by their department.