Govt Mulls 10% Salary, Pension Hike; Final Decision Expected on June 10
The federal government is actively considering a salary and pension increase for employees as part of the Budget 2025-26, sources from the finance ministry revealed.
One proposal includes a 10% hike in both salaries and pensions to offset inflation, along with a 30% disparity allowance for employees in Grades 1 to 16. A final decision is expected during the federal cabinet meeting on June 10, presided over by Prime Minister Shehbaz Sharif.
The government has also committed to addressing pay scale discrepancies, having made verbal and written agreements with employee representatives. Other options under review include merging one previous ad hoc allowance into the basic salary and extending the exemption for armed forces from the contributory pension scheme for another year.
Meanwhile, federal employees are demanding a 50% increase in salaries and minimum wages. They have announced a sit-in protest outside Parliament House if their demands are not addressed by June 10.
