I am sharing the latest news on income tax, Leave Encashment, and salary increases for Government Employees in Budget 2025-26. The Government representative has affirmed that the government will increase salaries for government employees. The committee is also working on leave encashment. The Finance Minister said that they will not put the burden of income tax on the salaried persons. The details are as follows:

Leave Encashment and salary increases for Government Employees in Budget 2025-26

As per Daily Jang, the special committee of the Federal Government has ensured the increase in salary of the Government employees, Pension Reforms 2025, and other demands of the Government employees. The meeting on the Leave encashment will be called during the coming week. They held a meeting on 27 May 2025. Government representatives and the representatives of the Government employees, Mr. Rehman Ali Bajwa and others, attended the meeting. There were also others who attended the meeting. They review the demands of the government employees as put in the agreement for an Increase in salary 150%, HRA, and oters between the government employees and the Government. As you know, there were many demands that the Government agreed to during the protest of the employees. These demands included pension reforms, PM Assistance Package, DRA 2025, and grant of Adhoc Relief Allowance. There were also many other demands.

Income Tax and Daily Dunya Dated 28-05-2025

According to the Daily Dunya dated 28 May 2025, the Finance Minister, Aurangzeb, has said that every department should have pay roll for the economic growth of the country. He said we cannot put all the burden on the employees / salaried persons.

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There are chances that the Government will reduce the burden of the income tax on Government employees. The Government employees are paying the most income tax as compared to other categories of tax paying.