The federal government is reviewing a proposal to raise employee salaries by up to 25% in the 2025–26 budget. Sources indicate the PML-N-led administration is expected to present the budget on June 2, with employees hoping for significant relief.
Under the plan, workers in Grades 1–16 may receive a 25% raise, while those in Grades 17–22 could see a 20% hike—mirroring the increments approved in the 2024–25 budget. That budget also included a 15% pension increase and raised the minimum wage from Rs32,000 to Rs37,000.
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Additionally, the government is considering a 10% reduction in income tax across various slabs for the salaried class, potentially offering Rs50 billion in relief—pending IMF negotiations scheduled for May 14–22, 2025
