Government plans 10% salary increase in Budget 2025-26

The federal government is expected to increase the salaries of government employees by 10% in the upcoming Budget 2025-26.

According to reports, the government is talking to the International Monetary Fund (IMF) to find ways to give relief to salaried workers.

The new budget will likely be announced on June 10, and that is when the official salary hike will be revealed.

A day before this, a special committee of the federal government assured employees that their demands — like pension reforms and salary increases — will be included in the new budget.

It was also mentioned that Rana Sanaullah will lead a meeting next week to make a decision about leave encashment (payment for unused leave).

Recently, an important meeting was held in Islamabad. It was chaired by Dr. Tariq Fazal Chaudhry, Minister for Parliamentary Affairs and Chief Whip of PML-N. Officials from different ministries and Rahman Bajwa, Chief Coordinator of the All Government Employees Grand Alliance (AGEGA), also attended.

The meeting reviewed the written agreement between the government and employees. After the meeting, Rahman Bajwa told media that Dr. Tariq Fazal promised that all legitimate demands would be met, including the Prime Minister’s relief package and leave encashment.

He added that the Ministry of Finance also assured that the agreement would be honored.

Bajwa said that on budget day, millions of employees from across Pakistan will come to Islamabad to see if the agreement is fulfilled. If it is, Dr. Tariq Fazal and Rana Sanaullah will be praised and honored. But if not, they will also join the employee protest.

In response to another question, Bajwa said both sides — the government and employee representatives — agreed to prepare working papers for the next committee meeting.

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