Latest News Updates Revised Pay Scales 2025 and 10pc Increase in Salary in Budget 2025-26
Good news for government employees in Pakistan! As per the latest report published in Daily Dunya Newspaper on 11 May 2025, the Federal Government is planning to revise the pay scales and increase salaries by 10% in the upcoming budget 2025-26. These changes are expected to be announced in the first week of June 2025 (tentative date). Check Pay Scale Salary Chart 2024.
What’s New in Budget 2025-26?
According to the news, the government may introduce a new pay scale structure called “Revised Pay Scales 2025.” Here are the main updates:
- The two current Adhoc Relief Allowances (ARA-2023 and ARA-2024) may be merged into the basic salary of employees.
- This merging will result in the creation of new basic pay scales.
- After the merge, the government might also grant a new Adhoc Relief Allowance 2025 at 10% of the new basic pay.
This is a welcome change as it will increase the take-home salary of government workers and make the pay structure more streamlined.
Detailed Updates on Salary Increase
Currently, federal government employees are receiving the following allowances:
- ARA-2023
- ARA-2024
These allowances are given as a percentage of basic pay. The new proposal is to combine these into the basic salary, and then give an additional 10% salary increase as ARA-2025. This adjustment will make a noticeable improvement in the overall salary structure.
History of Pay Scale Revisions in Pakistan
Normally, the government is supposed to revise the pay scales every three years, but this hasn’t always been consistent. Here’s a history of past revisions:
- 1972 – Pay Scales Revised
- 1977 – Pay Scales Revised
- 1983 – Pay Scales Revised
- 1987 – Pay Scales Revised
- 1991 – Pay Scales Revised
- 1994 – Pay Scales Revised
- 2001 – Pay Scales Revised
- 2005 – Pay Scales Revised
- 2007 – Pay Scales Revised
- 2008 – Pay Scales Revised
- 2011 – Pay Scales Revised
- 2015 – Pay Scales Revised
- 2016 – Pay Scales Revised
- 2017 – Pay Scales Revised
- 2022 – Pay Scales Revised
Now, it’s 2025, and three years have passed since the last revision. According to rules, it is the right time for the government to revise the pay scales once again.
Other Allowances Government May Increase
Along with the pay scale revision, employees are hoping for increases in the following additional allowances:
- House Rent Allowance / Hiring Allowance (for official accommodation or house rent support)
- Medical Allowance (to help cover health-related expenses)
- Conveyance Allowance (for daily travel and transport expenses)
Increasing these allowances will further ease the financial burden on employees, especially in light of rising inflation.
Conclusion
In short, the upcoming Budget 2025-26 could bring major financial relief for government workers. With the merging of old allowances into the basic pay and a 10% new allowance, this could be a very positive step. The full picture will be clear when the official budget is announced in June 2025.
