Pakistan Revenue
Government announces 7% pay hike and higher minimum wage to support workers ISLAMABAD, June 12, 2026 — Pakistan raises salaries, pensions and minimum wage in Budget 2026–27, announcing relief measures for government employees and low-income workers amid rising living costs.
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Salary tax collections drop year-on-year as debate grows over relief for salaried class in upcoming budget ISLAMABAD: The Federal Board of Revenue (FBR) collected over Rs518 billion in salary tax during the first eleven months (July–May) of fiscal year 2025-26 (11MFY26), reflecting a decline of around 6 per cent on a year-on-year basis.
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In a significant move aimed at providing financial relief to public sector employees and retirees, the federal government has proposed a 10% increase in the salary of government employees and a 7% hike in pensions in the Budget for the fiscal year 2025-26.
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ISLAMABAD, June 7, 2025 – The federal government is actively reviewing proposals to increase salary and pension for government employees in the upcoming Budget 2025–26, despite tight fiscal space and growing pressure from coalition partners.
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Islamabad, March 24, 2025 – The federal government has officially confirmed that salary and pension payments for March 2025 will be released on March 27, ahead of the Eid ul Fitr celebrations. This decision aims to provide financial ease to government employees and pensioners so they can prepare for the festival without monetary stress.
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The Finance Ministry has strongly denied reports attributing a statement to Finance Minister Muhammad Aurangzeb regarding potential changes in government employees’ salaries.
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Islamabad, December 11, 2024 – The government of Pakistan has announced the early disbursement of salaries and pensions for Christian citizens ahead of Christmas festivities. The measure aims to facilitate the Christian community in celebrating the occasion with ease and joy.
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Salary persons should calculate their income for the purpose of tax chargeability under changes made through Finance Act, 2024 and effective from July 1, 2024.
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In a move aimed at alleviating financial burdens on government employees amidst rising inflation, the government of Pakistan announced a significant increase in salaries as part of the fiscal year 2024-25 budget presented on Wednesday.
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As the federal government expedites the finalization of the 2024-25 budget, significant changes are on the horizon for the public sector workforce. According to reports, the Finance Minister has proposed a substantial 15-20% salary increase, reflecting a broader strategy to enhance compensation across various grades.
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