Budget 2025-26 likely to bring pay and pension hike

The federal government is likely to unveil the budget for next fiscal year 2025-26 in early June with all employees expecting a significant increase in their salaries and pensions.

According to available information, the government may approve a 25% salary increase for employees in Grade 1 to 16 and a 20% raise for officers in Grade 17 to 22. A 15% increase in pensions for retired government employees is also being proposed. However, these plans have not yet been officially confirmed and will be finalized on budget day.

This step is being considered to provide relief to public sector workers amid rising inflation. While the salary and pension hike is aimed at supporting working and retired individuals, there are concerns regarding the budget’s overall size and priorities.

The upcoming budget sets aside Rs921 billion for development projects. This is significantly lower than the Rs1,600 billion minimum suggested by the Ministry of Planning to meet national development needs. The shortfall may affect key infrastructure, health, and education initiatives

Officials are evaluating several proposals to balance economic pressures, public demands, and fiscal responsibilities. Economic experts believe the government is attempting to strike a middle ground between austerity and public welfare. The final announcements will be made during the official budget presentation. Until then, government employees and pensioners await confirmation of the expected relief measures.