Good News for employees as government approves increase in salaries and pensions

Islamabad: Government employees have received good news as the Federal Cabinet has approved the budget draft, which includes an increase in salaries and pensions for public sector employees.

According to details, a special meeting of the Federal Cabinet was held in the federal capital under the chairmanship of Prime Minister Shehbaz Sharif, during which the draft budget documents for the new fiscal year were approved.

The meeting also held detailed discussions regarding an increase in salaries and pensions for government employees. Following deliberations, the Cabinet approved a 7 percent increase in employees’ salaries and a 7 percent increase in pensions.

The Cabinet further decided to merge the 15 percent Adhoc Relief Allowance granted in 2022 and the 10 percent Adhoc Relief Allowance granted in 2025 into the salary structure.

Immediately after the Cabinet’s approval, Federal Finance Minister Muhammad Aurangzeb is scheduled to present the federal budget for the new fiscal year in the National Assembly.

Meanwhile, Prime Minister Shehbaz Sharif thanked the coalition parties for their full support during the preparation of the 2026-27 budget and also expressed gratitude to the International Monetary Fund (IMF) for its assistance.

Federal ministers and ministers of state also showed their support for the Prime Minister during the Cabinet meeting by thumping their desks in approval.