Good News for Government Employees in Budget 2025-26

The Government of Pakistan is getting ready to share the new federal budget, and there’s exciting news for government workers and retirees. Reports suggest that salary and pension increases are on the way to ease financial pressures.
What Salary Hike Can Employees Expect?
According to sources, the Finance Ministry is proposing a salary boost of 10% to 15% for government employees. This increase aims to help workers manage the rising costs of daily life due to inflation.
Pension Boost for Retirees
Retired government workers might also see some relief. A 5% to 7.5% pension increase is under consideration to support them with their expenses.
Who Decides the Final Plan?
These ideas are still in discussion. The federal government will finalize the decision during the budget announcement. Provinces like Punjab are likely to adopt similar changes once the federal plan is confirmed.
Summary
In Budget 2025–26, the government may increase salaries by 10–15% and pensions by 5%. If approved, this decision will bring financial relief to both working and retired government employees.