Sindh announces salary and pension hike in 2025–26 budget

Sindh announces salary and pension hike in 2025–26 budget

Karachi, June 13, 2025 – The Government of Sindh on Friday presented the provincial budget for the fiscal year 2025–26, unveiling a comprehensive package of relief measures for government employees and pensioners amid ongoing inflationary pressures. Key highlights of the budget include increases in both salary and pension, reaffirming the provincial government’s commitment to employee welfare and financial equity.

To support its workforce, the Sindh government has proposed a 10% ad hoc relief allowance for all employees from Basic Pay Scale (BPS) 01 to BPS-22. This measure aims to ease the burden of rising living costs on public servants across the province. Similarly, a 7% raise in pension has been announced for retired government employees. The combined annual financial impact of these adjustments is estimated at Rs52 billion.

Recognizing the importance of safeguarding the lowest income groups, the Sindh government has also proposed the continuation of the “Personal Pay” provision for employees in BPS-01 to BPS-06. This initiative ensures that none of these workers fall below the minimum wage level of Rs37,000. During the current financial year, this relief benefited 216,667 employees with a total cost of Rs8.277 billion. In the upcoming year, an estimated 163,701 employees will receive similar salary support, with a projected cost of Rs4.424 billion.

In a move to enhance inclusivity, the provincial government has increased the Special Conveyance Allowance for disabled employees from Rs4,000 to Rs6,000 per month. This raise will incur an additional Rs114.48 million and reflects Sindh’s efforts to empower historically marginalized communities with dignity and improved mobility.

In a major achievement, the Sindh government also announced that it has successfully cleared all outstanding pension dues of civil servants who retired on or before June 30, 2025. This long-awaited move, amounting to Rs35 billion, not only alleviates financial distress for thousands of families but also sets a commendable standard in public financial governance.

Through these salary and pension enhancements, the Government of Sindh aims to foster a more equitable, sustainable, and supportive administrative environment, demonstrating both fiscal responsibility and compassionate leadership in challenging times.