Government Employees Salary Raise: Finance Division Proposes 10-15% Pay Bump in Budget Draft

ISLAMABAD — As final layout frameworks for the Federal Budget FY2026-27 are synchronized for June 10, the Finance Division has proposed a 10% to 15% salary increase for government employees (BPS 1-22) alongside a proportional bump in pensions. Designed to cushion the public sector workforce against high cost-of-living standards, the measure is being balanced against strict austerity guidelines. Concurrently, the Economic Coordination Committee (ECC) has approved specialized grants to manage administrative stipends, pushing the state to carefully balance civil sector relief with stringent IMF fiscal deficit targets.