Increase in Salary and Pension in Budget 2025-26
Budget 2025-26 Pakistan
As Budget 2025-26 of Pakistan is in final stage and will be presented to the National Assembly of Pakistan, expectations are going high with the passage of every day. Government employees, retired personnel have big expectations with the Government of Pakistan for increase in salaries and increase in pension of retired employees. Keeping in view the present situation of War with India, it seems that position will be crucial while deciding the relief to the Government Employees and retired employees of Pakistan.
Earlier, it was reported that Government of Pakistan is planning to increase the salaries of government employees and increase in pension of retired employees, significantly. It was also reported by different news channels that tax relief has also been proposed for the lower staff of Government departments while proposal of new income tax on pensioners is also under discussion. It was also reported that Disparity Reduction Allowance DRA for the employees of Federal Government Departments has also been approved @30% of the basic for the employees already availing some portion of Disparity Reduction Allowance.
If the above changed are implemented, could have far reaching effects for the financial well being of employees of public sector as well as retired pensioners. This article will provide comprehensive look towards the updates under expectations in the current Budget 2025-26, because all the reports and speculations are connected with Budget speech.
1: Salary Increase for Government Employees
As the inflation is going high and high and around double digits, Government employees of Pakistan are facing declined purchasing power over the past many years. The coming budget is expected to increase the salaries of Government employees from 15% to 20% of the basic pay for the employees and officers of Pakistan.
- Following increments in salaries are expected in the Budget 2025-26:
- An adhoc relief of 15% to 20% for the employees of BS 1 to 16 and officers from BS-17 to BS-22
- Merger of previous adhoc reliefs into basic pay with revision of pay scales
- Disparity Reduction Allowance @ upto 30% of Basic pay for the employees who are receiving no other special pay or any allowance equal to basic pay.
The expected increase in salaries in line with Employees’ Associations, who have submitted their demands to the Ministry of Finance and aims to provide relief in response to increase in utility, fuel, accommodation and food costs.
2: Increase in Pension of Retired Government Employees
Retired Government employees are also eagerly waiting for the Budget 2025-26 and expecting some big relief in their pension. Retired employees and senior citizens of Pakistan need immediate increase in their Medical Allowance and substantial increase in their pension as inflation is raising day by day. Price of medicines and health services is beyond their reach. However, it is hoped that the Government of Pakistan is working on it and will hopefully provide relief the retired pensioners as well.
Expected Increase in Pension in Budget 2025:
- A likely 15% to 20% increase in pensions, across all categories of retired employees.
- Consideration of medical allowance enhancements for aged pensioners.
- Possibility of extending family pension benefits and removing bureaucratic hurdles in pension disbursement.
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