I am sharing the latest Salary Increase News Budget 2026-27 for the Goverment employees. As per the Daily Dunya dated 27-05-2026, there is a proposal of 10% increase in salary of the employees, merging of four adhoc relief allowances into basis pay, thus revised pay scales 2026. There are also a proposal to enhance 100% conveyance allowance. The pension may increase upto 80%. But all these proposals depend on the approval of IMF. The details are as follows:
The Latest Salary Increase News Budget 2026-27
According to the Daily Dunya Newspaper dated 27th May 2026, there are a good Latet Salary Increase News Budget 2026-27 for the government employees. These good news depend on the approval of the International Monetary Fund (IMF). These news for Pay and Allowances Increase Budget 2026-27 are as follows:
- Salary Increase for Govt Employees @ 10% of Basic Pay
- Merging Adhoc Relief Allowances for the year 2022, 2023, 2024 and 2025
- Introduction of Revised Pay Scales 2026 instead of Revised Basic Pay Scales 2022
- Tax Relief for the employees getting 0.1 million to 0.2 million monthly salary.
- Decrease in tax for the employees getting 1.2 million annual salary to 2.2 million
- Increase in conveyance allowance @ 100% due to the increase in rates of petrol prices
- 50% to 75% increase in CA for BPS-20 to BPS-22
- Proposal of Disparity Reduction Allowance for BPS-01 to BPS-16
- Up to 80% increase in pension for the pensioners due to average dearness for the last two years.
- Proposal of including armed forces in pension contributory Scheme.
The negotiation for the above relief is being under progress with the IMF.
Proposal of Pay Increase Budget 2026-27 Good or Bad Package for Employees and Pensioners
If the Government approves the above Pay Increase Budget 2026-27 for the employees it will be a good package for the employees. The main point is the merging of adhoc relief allowances into basic pay and introduction revised pay scales 2026. If government grants 10% ARA 2026 but on the Pay Scales 2026, then it will be a good relief but if on 2022 pay scales then not a good decision. The CA is not reasonable if 100%. The conveyance expenses have increased more than 200%. The CA should be minimum 200% increase.
