Last Updated on April 9, 2026 by Galaxy World
Government of Pakistan, Ministry of Finance, issued a Notification on 05-04-2026 in connection with Project Pay Scales 2026 (PSDP). The Federal Government revised the Standard Pay Package for the Project Staff. The details are as follows:
Project Pay Scales 2026 (PSDP)
The undersigned is directed to refer to this Division’s O.M. No. F. 4(9)R-3/2008 dated 18-04-2022 on the above subject and to convey the approval of the Prime Minister to the revision of Project Pay Scales, meant for officers/staff directly recruited from the open market on a contract basis for the execution of Development Projects funded from PSDP. The revised Project Pay Scales are as follows: –
Table of Standard Pay Package for the Project Staff
| Project Pay Scale (PPS) | Regular BPS | Minimum (Rs.) | Increment @ 3% of the Minimum | Maximum (Rs.) |
| PPS-1 | BPS 01-04 | 37,800 | 1,140/- | 43,500 |
| PPS-2 | BPS 05-08 | 47,250 | 1,420/- | 54,350 |
| PPS-3 | BPS 09-10 | 59,070 | 1,780/- | 67,970 |
| PPS-4 | BPS 11-13 | 70,880 | 2,130/- | 81,530 |
| PPS-5 | BPS 14-15 | 94,500 | 2,840.- | 108,700 |
| PPS-6 | BPS 16 | 141,750 | 4,260/- | 163,050 |
| PPS-7 | BPS 17 | 212,630 | 6,380/- | 244,530 |
| PPS-8 | BPS 18 | 295,320 | 8,860/- | 339,620 |
| PPS-9 | BPS 19 | 398,130 | 11,950/- | 457,880 |
| PPS-10 | BPS 20 | 568,750 | 17,070/- | 654,100 |
| PPS-11 | BPS 21 | 735,000 | 22,050/- | 845,250 |
| PPS-12 | BPS 22 | 1,050,000 | 31,500/- | 1,207,500 |
Basic Terms and Conditions for Salary Package
The aforesaid pay package will be effective from 01-07-2026 for the new as well as the ongoing PSDP projects and shall be admissible subject to the following conditions:-
i. The above lump sum pay package will be admissible for fresh/direct/existing employees of PSDP Projects. However, pay of the fresh/direct employees shall be fixed at the initial stage, and thereafter an annual increment @ 3% of the Initial stage would be admissible.
ii. The pay of the existing PSDP-funded projects’ employees shall be fixed at the next higher stage of the revised stage of the above pay package.
iii. Annual increment to the Project employees in the Standard Pay Package shall be admissible on completion of one year of continuous service from the date of appointment on the relevant post, and also in the subsequent years in the same manner.
iv. The above lump sum project pay package shall not in any way be less than the minimum rates of wages as revised from time to time.
v. Government employees may apply for project posts. The terms and conditions for selection in a project will be governed under the Finance Division’s O.M.No.4(9)R-14/2024, dated 01.07.2025. The project employees appointed through transfer (deputation) on a full-time basis will get pay and other allowances under the above-referred O.M., plus deputation allowance as admissible under the deputation policy contained in Establishment Division’s O.M.No.1/13/87/R-2 dated 03-12-1990, as amended from time to time, at the rate of 20% of the basic pay, subject to a maximum. Rs. 20000/- per month or as revised from time to time.
vi. The relevant project approving fora, like CDWP or ECNEC, will decide the number and pay scale of project staff.
vii. Adoption of the Standard Pay Package-2026 shall require revision/ approval of PC1x 1 from the competent forum.
viii. The Projects employees will be appointed on a contract basis in PSDP projects for an initial period not exceeding two years, which will be extendable further till the completion period of the project on a yearly basis after Evaluation of their performance.
ix. No additional facility, in addition to the revised Standard Pay Package, shall be admissible for PSDP Projects’ employees.
x. This pay package shall not be admissible to those who are re-employed/appointed on contract after their retirement. They may be allowed pay and allowances, as per provisions of the contract policy of the Establishment Division issued vide their O.M. No.F.10/52/95-R-2 dated 18th July, 1996, and as amended from time to time.
xi. Those retired Government servants who compete with others from the private sector for appointments against projects positions on the basis of open competition and are selected on merit should be entitled to the package, perks and privileges, laid down for that positions in the projects according to the clarification issued through Establishment Division’s- O.M.No.10/67/2004- R-2, dated 21-06-2005 or as revised from time to time.
xii. The officers/officials granted additional charge of the posts of projects in addition to their own duties will be entitled to draw additional charge allowance @ 20% of the basic pay, in addition to their own pay/allowances of their regular posts, subject to a maximum of Rs. 20,000/- per month or as revised from time to time.
xiii. This pay package will not be admissible to those project employees whose services/posts are transferred to the non-development side after completion of the project, from the date of their transfer.
xiv. The payment of the pay package of project staff will be stopped from the date of transfer of their service/post to any other establishment.
xv. On transfer of project posts to the non-development side, such posts shall be filled in the prescribed manner in the regular Basic Pay Scale, and incumbents of such posts shall be treated as fresh employees of the Ministries/ Divisions/ Departments and not for the projects.
xvi. If an employee of the project is selected for a post on the non-development side, he will be appointed at the initial stage of the relevant Basic Pay Scale, and his pay and service rendered in the project shall not be protected/counted for any purpose, i.e., pay, pension, and seniority, etc.
xvii. Delegation of power to appoint project staff in PPS 11&12 to Ministers-in-charge, along with a recommendation to include one representative each from Finance Division, Establishment Division, and Planning Division in the Selection Committee for ensuring transparency in the recruitment process.
xviii. A partial amount (10%-20%) of pay in addition to the normal salary for senior positions (PPS-10 and above) shall be linked with evaluation based on measurable KPIs.
xix. Project Director on Special Pay Package with defined benchmarks should invariably be included for the project PC-I costing Rs. 100 billion and above. However, the approving forum, i.e., ECNEC, may decide emolument for the grant of a Special Pay Package depending on the requirement and complexity of each project, and shall incorporate in its decision sheet explicitly.
xx. Project Directors for projects exceeding Rs. 100 billion can be employed on a Special Pay Package with enhancement. However, such a package should invariably be included in the PC-I, and ECNEC shall decide.
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