Islamabad: In the upcoming budget for the fiscal year 2025-26, the government plans to implement a 10% increase in salaries and pensions for government employees.

Sources reveal that the minimum wage will also be raised, with proposals including a 10% salary hike and a 30% allowance for government staff. Additionally, employees in grades 1 to 16 are set to receive a 30% disparity allowance.

There is a suggestion to integrate the ad hoc relief allowance into the basic salary structure. Greater relief is expected for employees in grades 1 to 16, while employees in grades 17 to 22 may also receive some form of financial relief.

For the salaried class, adjustments to income tax brackets are proposed in the budget 2025-26, including raising the annual tax exemption threshold to over PKR 600,000. The Prime Minister will finalize these proposals during the upcoming federal cabinet meeting.