Lahore, June 16, 2025 – The Punjab government has announced a 10% increase in salary and a 5% increase in pension for provincial government employees as part of its budget for the fiscal year 2025-26.
Punjab Finance Minister Mujtaba Shuja-ur-Rehman made the announcement during his budget speech in the Punjab Assembly on Monday. He emphasized that both serving employees and pensioners face mounting economic challenges due to persistent inflation, and the government recognizes its responsibility to support them.
“Government employees dedicate their entire careers to public service. It is the duty of the state to ensure their financial well-being, especially after retirement,” the minister stated. He explained that those relying solely on fixed incomes—such as a government salary or pension—are disproportionately affected by inflation and the rising cost of living.
As part of the fiscal relief package, the minister declared a 10% salary raise for all provincial employees from grade 1 to grade 22, effective from July 1, 2025. Additionally, a 5% pension increase has been approved for all retired employees who served under the Punjab government.
The minister further announced that the Punjab government has decided to raise the minimum monthly salary from the existing Rs37,000 to Rs40,000. This move aims to provide support to low-income workers amid growing economic pressures and rising household expenses.
These adjustments reflect the government’s ongoing commitment to improving the welfare of public servants and retirees, as part of a broader strategy to promote social stability and equity within the province. By prioritizing human resource development and financial security, the Punjab government hopes to boost morale among civil servants and ensure continued effective service delivery across departments.
The increase in salary and pension is part of a larger fiscal framework presented in Punjab’s Rs5.34 trillion budget for FY2025-26, which focuses on development, social welfare, and long-term economic resilience.