Latest Salary Increase News 2026-27 Pakistan – Expected 10% to 15% Raise in Federal Budget

The latest update regarding the salary increase in Budget 2026-27 has brought hope for government employees across Pakistan. According to a report published in Daily Jang on 6 June 2026, the government is considering a 10% to 15% increase in salaries and pensions for federal employees in the upcoming budget. The final decision will be made after approval from the Prime Minister of Pakistan and consultation with allied political parties.

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Expected Salary Increase in Budget 2026-27

Recent discussions at the federal level focused on taxation, employee salaries, and pension reforms. During these meetings, the Prime Minister directed the concerned authorities to prepare relief measures for government employees and pensioners while keeping the country’s financial resources in mind.

Sources indicate that the proposed salary increase may range between 10 percent and 15 percent, which could provide some relief to employees struggling with rising inflation and living expenses.

Major Demands of Government Employees

Government employees have been demanding several financial reforms due to the continuous increase in daily expenses, house rents, transport charges, and medical costs. The key demands include:

• Increase in House Rent Allowance according to Revised Pay Scales 2022
• Minimum 200% increase in Conveyance Allowance
• Medical Allowance should be at least Rs. 10,000 per month
• Merger of Adhoc Relief Allowances into basic pay
• Introduction of Revised Pay Scales 2026
• Grant of Disparity Reduction Allowance (DRA) to remaining eligible employees
• Significant increase in pensions for retired employees

Revised Pay Scales 2026

Currently, government employees are receiving four different Adhoc Relief Allowances introduced in 2022, 2023, 2024, and 2025. Employees are demanding that these allowances should now be merged into the basic salary structure. Many employee unions are also requesting the implementation of Revised Pay Scales 2026 to provide long-term financial stability and improve future pension calculations.

Increase in House Rent Allowance

House rents in major cities of Pakistan have increased sharply over the last few years. However, the current House Rent Allowance is still based on the old 2008 pay scales. Employees believe the government should revise the allowance according to the 2022 pay scales to match current rental market conditions.

Medical Allowance Needs Immediate Revision

Medical expenses have become one of the biggest challenges for salaried employees. At present, many government workers receive only Rs. 1,500 per month as medical allowance, which is insufficient even for basic consultation and medicines. Employees are demanding that the monthly Medical Allowance should be increased to at least Rs. 10,000 in Budget 2026-27.

Demand for Higher Conveyance Allowance

Due to continuous hikes in petrol prices and transportation fares, employees are spending a large portion of their salaries on daily travel expenses. There is a strong demand for increasing the Conveyance Allowance from the current rates to approximately Rs. 10,000 to Rs. 20,000 per month.

Disparity Reduction Allowance (DRA)

Many federal and provincial government employees are still not receiving the Disparity Reduction Allowance. Employees’ representatives are requesting the government to provide equal DRA benefits to all eligible departments and remove pay differences among employees.

Pension Increase for Retired Employees

Pensioners, especially retired employees from lower grades, are facing serious financial difficulties due to inflation. Many pensioners receive only Rs. 15,000 to Rs. 20,000 per month, which is not enough to manage household expenses. There is a growing demand for increasing the minimum pension to at least Rs. 50,000 per month in the upcoming federal budget.