The Government of Pakistan is planning to raise the salaries of government workers in the Budget 2025-26. This move is meant to support employees, especially those in lower pay grades, who are struggling due to high prices and inflation. Many proposals are being discussed to give relief to government staff through salary and pension increases. In this article, we will explain all the main updates in simple words so everyone can easily understand the changes. The new budget will bring both benefits and challenges for workers across different grades.
Quick View of Budget Highlights
| Area | Change Planned |
|---|---|
| Grade 1–16 Staff | 30% allowance suggested |
| Grade 17–22 Officers | 15% salary increase proposed |
| Salary & Pension Growth | 10% general increase under review |
| Petrol/Diesel Prices | Likely to increase due to carbon tax |
Grade-Wise Salary Increasing Update for All Employees
The Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26 will help both lower and higher-grade employees. Those in Grades 1 to 16 may receive a 30% special allowance. Workers in Grades 17 to 22 could get a 15% raise in their pay. These updates are planned to give extra support to government workers and make the pay system more fair. The goal is to help people deal with inflation and give them better financial stability.
10% Raise in Pay and Pension
A 10% overall increase in salaries and pensions is likely in the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26. This raise is for current government staff as well as retired workers. The idea is to help them with high living costs. This increase will give direct financial relief. The raise will be added to the current salary and pension, helping many families to better manage their household expenses.
2022 Allowance May Become Part of Basic Salary
Another key part of the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26 is the merging of the 2022 ad hoc allowance into basic pay. This means the extra money employees were receiving as a separate allowance might now become a permanent part of their basic salary. This will help increase future pension amounts and improve yearly raises, because those are based on basic pay. It will give long-term financial benefits to employees.
Government Plans to Save Money
To balance the new salary increases, the government is planning some cost-saving steps under the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26. One such plan is to stop all ministries from buying new cars. Offices will also be told to use less gas and electricity. These steps will help save money that can be used for salary and pension improvements. It is part of an austerity drive to control unnecessary spending.
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Fuel Prices Might Go Up
As part of the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26, a new carbon tax of Rs2.5 per litre has been added to fuel prices. This will likely increase the cost of petrol and diesel from the second half of June 2025.
- Petrol may rise from Rs. 253.63 to Rs. 256.13
- Diesel may rise from Rs. 254.64 to Rs. 257.14
This change will affect transport costs and may also raise prices of other goods due to higher delivery charges.
What It Means for Government Workers
With the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26, employees are expected to benefit through better salaries and pensions. However, fuel prices and strict spending controls may make it harder in other ways. Still, most workers—especially in lower grades—will receive helpful financial support. These updates aim to reduce the impact of inflation and give people a better standard of living.
Conclusion
In this article, we are sharing all the details about the Grade-Wise Salary Increasing Update in Upcoming Budget 2025-26. The government plans to help employees through salary and pension increases, merging allowances, and giving more to lower-grade workers. At the same time, fuel prices may rise and departments may face spending cuts. Still, this budget is expected to bring much-needed relief to many people working in the government.
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FAQs
Q1: Will contract employees also get this salary increase?
No clear details are shared yet. However, permanent government staff are the main focus for this update.
Q2: Will this raise be given in one part or in phases?
If approved, the raise is expected to start from July 2025 and may be given all at once.
Q3: How will the new budget affect daily life for workers?
Higher salaries will help, but rising fuel prices may also increase transport and food costs.
Q4: Will pensioners also see a rise in their monthly income?
Yes, a 10% pension increase is being planned for retired employees to support them.