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Four proposals for salary increase featured in Budget 2025-26

WEB DESK: Multiple proposals are under consideration for increasing salaries of government employees in the upcoming federal budget 2025-26.

According to the sources from the Ministry of Finance, four major proposals have been developed, including enhancements in allowances and benefits for employees.

The first proposal involves approving a 30% disparity allowance for employees from Grades 1 to 16. The second proposal recommends a 10% increase in salaries and pensions in line with inflation.

The third proposal suggests merging one of the two recent ad-hoc relief increments into the salary structure. And in fourth proposal proposes a 15% increase in disparity allowance for employees from Grades 1 to 16, applicable to employees from Grades 17 to 22.

Additionally, there is a proposal under consideration to exempt the Armed Forces from the Contributory Pension Scheme to facilitate potential increases in their pensions. It is also suggested that government allies be advised to increase salaries, aiming to provide relief to government employees.

Final decisions regarding salary increases are expected to be made during the cabinet meeting prior to the budget announcement. This development is seen as good news for government employees, with a fair salary increase anticipated in light of current economic conditions.