GenzeeBudget 2026-27: Government Employees Get a 7% Pay Raise
Alongside the income tax relief for salaried workers, Pakistan's federal budget 2026-27, presented in mid-June, included a 7% increase in pay and pensions for government employees, effective from 1 July 2026.
What was announced
As reported by The Express Tribune, the relief package for salaried taxpayers combined a lower income tax rate, the abolition of the 9% surcharge on salaried individuals, and the pay-and-pension bump for the public sector. Prime Minister Shehbaz Sharif had directed the finance ministry to prioritise relief for salaried employees ahead of the budget, after several years in which take-home pay lagged behind inflation.
What it means for take-home pay
For government employees, the raise applies to basic pay from the new fiscal year, and pensioners see a matching increase. Combined with the surcharge removal, higher earners in government service see two separate boosts to their net pay this year — one from the pay scale increase itself, and one from paying less tax on it.
To see how the combined effect lands on your own paycheck, plug your new salary into our Pakistan Salary Tax Calculator, or use the Salary Converter to compare your old and new monthly figures side by side.
Note: This is a plain-language summary, not tax/financial advice. Rates and rules can change; verify your specific case with the relevant authority or a qualified professional. See our editorial policy for how we source and date these updates.