As per the Daily Express dated 29-05-2025, the IMF agrees to a 10% of Basic Pay Increase in Salary in Budget 2025-26 for Government Employees. IMF has conditionally agreed to give relief on tax to the salaried persons. There is also a demand to impose income tax on pensioners. The details are as follows:

The Latest News – IMF and 10% of Basic Pay Increase in Salary in Budget 2025-26

               There are the latest updates on salary increases in the budget 2025-26 for the Government employees. The International Monetary Fund (IMF) conditionally agrees to increase salaries for government employees in the upcoming Budget 2025-2026. As per the news, the IMF wants the government to reduce its expenses so that the employees may have relief. Pensioners receiving heavy pensions should pay tax on their monthly pension. The federal government will announce the Budget on June 10, 2025.

               The discussion on the Budget is still in process with the IMF authorities, and there may be changes in the proposals. If the Government manages the alternative sources of collection of tax, the government employees may have more relief in the budget 2025-26.

               Keeping in view the current dearness/hikes in price of the daily use items, Government employees request the Government to increase the salaries minimum @ 50% of the Basic Pay. If the Government gives relief @ 10%, it will have no impact on the financial issues of the Government employees. They are already facing troubles due to high rates of items, their medical treatment expenses, the houses they rent, and expenses on their transportation. So the government should give relief to the employees to the maximum level. They request Government increase House Rent Allowance, CA, and Medical Allowance.

There was also recent news about the latest updates of salary increase for Govt employees in the Budget 2025-26 of the Federal Government. Nearly daily, we read news about the salary increase, and we shall read such news till the announcement of the fiscal budget 2025-2026.

Relief for Govt Employees in Budget 2025-2026

The Government has decided to provide relief to Government employees in the Budget. The employees will have relief in connection with income tax. The teachers will also be exempt from 25% of their income tax.