As of May 14, 2025, the Government of Pakistan is in the process of finalizing the federal budget for the fiscal year 2025–26, expected to be presented in early June. While official announcements are pending, various proposals regarding salary increases for government employees are under consideration. ARY NEWS
Proposed Salary Increases
- Grade 1–16 Employees: A proposed 25% increase in basic pay.Finance Department Khyber Pakhtunkhwa
- Grade 17–22 Officers: A proposed 20% increase in basic pay.Daily The Destination
These proposals aim to address inflationary pressures and improve the financial well-being of government employees.
Additional Considerations
- Revised Pay Scales: The government may introduce revised pay scales by merging previous Adhoc Relief Allowances (ARAs) into the basic pay. A new Adhoc Relief Allowance (ARA-2025) of 10% on the revised basic pay is also under consideration. Galaxy World+1Finance Division+1
- Tax Relief: Proposals include a 2.5% reduction in income tax rates for the salaried class, aiming to alleviate the tax burden. Geo News+2Pakistan Observer+2Pakistan Observer+2
Budget Presentation Timeline
The federal budget for 2025–26 is expected to be presented on June 2 or 3, 2025. Final decisions regarding salary increases and tax adjustments will be confirmed during the budget announcement. Pakistan Observer+1Galaxy World+1Galaxy World
For a detailed discussion on the proposed salary increases and budget considerations, you may find the following video informative:
