Federal Cabinet approves 10 percent salary hike for government employees
- The federal cabinet approved a 10% salary hike for government employees and a 7% pension increase for retirees in the FY26 budget presented in June 2025.
- This decision followed ongoing economic challenges and reforms after the economy faced potential debt default risks as recently as 2023.
- The budget allocates Rs2.55 trillion for defence spending, a 20% increase amid national security concerns, alongside projected economic growth of 4.2% in 2025-26.
- Finance Minister Muhammad Aurangzeb announced the salary and pension increases during his National Assembly budget speech, calling the budget an "extremely important and historic moment."
- The salary and pension rises aim to provide relief to inflation-affected workers, support the defence budget, and sustain economic stability achieved through structural reforms.
22 Articles
22 Articles
The State Remuneration Board has decided that ministers' salaries will be increased from July 1. This is reported by TV4-Nyheterna.
Federal Cabinet approves 10 percent salary hike for government employees
The federal cabinet has given the nod of approval for a 10% hike in the salaries of government employees and a 7% increase in pensions of retired public servants. Although the cabinet, which convened on Tuesday, had in principle approved the federal budget for fiscal 2025-26, deliberation on the salaries of government employees and other matters continued. The PPP, a key coalition partner of the PML-N government, demanded a further increase in …
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