ISLAMABAD: A six percent increase in salaries and pensions of government employees was approved in the federal budget 2025-26.
According to sources, the minimum wage is also expected to be increased. Government employees will receive a 6% salary hike and a 30% allowance. It is also proposed to merge the ad-hoc relief allowance into the basic salary.
Employees from Grade 1 to 16 are expecting more relief, while a proposal is also under consideration to provide relief to employees from Grade 17 to 22.
For salaried individuals, changes in the income tax slabs are being considered, with a proposal to raise the annual tax exemption limit above Rs. 600,000. The final decision will be made by the Prime Minister in the federal cabinet meeting.
