The Finance Minister Mr. Oranzab presented the Federal Government Budget for the year 2025-26 on 10 June 2025. The Finance Minister said that the Government is giving relief to the Government Employees in this budget. The government increased the pension for the pensioners and salaries for the employees. The relief package for the Govt. employees and pensioners as per the Budget Speech 2025 is as given below:
Salary Increase as per the Budget Speech 2025-26 for Govt.
Employees.
The government increase in salaries for the employees
§
Increase in Salary of Federal Government Employees of Pakistan @ 10% of Basic
Pay
§ Grant of an Increase in Pension for the Pensioners of the
Federal Government @ 7% of the Net pension
§ Grant of Disparity Reduction Allowance to Eligible Employees @
30% of Basic Pay
§ Grant of Special Conveyance Allowance Increased from Rs. 4,000/-
per month to 6,000/- per month.
Tax Relief for Salaried Persons
§ Employees getting an annual salary from 6 lac to 12 lac will pay
2,5% income tax instead of 5%
§ Employees getting annual salary upto Rs. 12 lac will have the
tax formula with Rs. 6000/- instead of 30,000/-.
§ Employees getting annual salary upto Rs. 18 lac will have the
tax formula with Rs. 72000/- instead of 120000/-.
§ Employees getting annual salary upto Rs. 24 lac will have the
tax formula with Rs. 162000/- instead of 23000/-.
§ Salary upto 22 Lac will have to pay tax @ 11% instead of 15%
§ The higher salaries will also have tax relief in their salaries.
Reforms in Pension
§ Family Pension Period is only 10 Years
§ Elimination of more than one pension
§ Reducing before 60 years age retirement
§ Only one option: pay or pension after getting a job after
retirement
