Budget 2025-26: Govt announces 10% increase in salaries, 7% in pensions

Islamabad (Web Desk): Minister for Finance and Revenue Senator Mohammad Aurangzeb, on Tuesday, put forth proposals for the Federal Budget for the fiscal year 2025-26, which included a 10% enhancement in the pensions of retired federal employees.

The minister highlighted that despite prevailing financial constraints, the government had opted for a 10% salary hike for employees across Grade 1 to 22, intending to boost their purchasing power.

Meanwhile, the special conveyance allowance for handicapped employees is set to rise from Rs 4,000 to Rs6,000.

To mitigate disparities among employees across different departments, a 30% disparity reduction allowance has also been proposed for eligible staff.