As Pakistan prepares to present the Budget 2025, government employees are likely to receive a significant financial boost. According to insider reports, the federal government is evaluating four major proposals aimed at easing the financial burden on the salaried class. While final approval is expected during today’s cabinet meeting, the suggested increases have already sparked hope among millions of public sector workers.
Pay Raise in Budget 2025 – 10% Salary Increase Proposed
One of the key highlights under consideration is a 10% salary increase for all federal government employees. This across-the-board raise is being seen as a much-needed measure to address rising inflation and cost of living challenges. Sources indicate that this increase is expected to be effective from July 1, pending formal approval during today’s budget session.
Also Read: Pakistan to Present Rs17.8 Trillion Budget 2025–26 with Major Tax Reforms
30% Disparity Allowance for Grades 1–16
Employees in lower grades (1 to 16) are also being considered for a 30% disparity allowance, which aims to reduce the income gap between various employment tiers. If approved, this allowance could be merged into their basic pay structure over time, ensuring a long-term benefit rather than just a temporary relief.
Grade 17–22: Additional Support in Review
For higher-grade officers (Grades 17 to 22), another proposal includes a 15% increase or a specialized disparity allowance. These officials are often left out of sweeping reforms, but the Pay Raise in Budget 2025 may offer them targeted compensation revisions. This is part of the government’s broader effort to maintain administrative motivation and reduce disparity between federal and provincial scales.
Pensions Likely to Increase by 7–10%
Retired civil servants may also receive relief under Budget 2025. A pension increase ranging from 7% to 10% is on the table. This step, if approved, will provide much-needed support to senior citizens who are struggling with rising utility and medical expenses.
Inflation-Linked Salary Indexing Proposal
Another noteworthy proposal links future salary increases with inflation. If adopted, this framework will automatically adjust government salaries based on the Consumer Price Index (CPI), making the system more responsive to real-world economic pressures.
