Salary Increase 2026-27 Pakistan: Every Province Compared

Quick answer: The federal government and all four provinces announced a 7% salary increase for government employees in their 2026-27 budgets. A 7% pension rise was announced for federal, Sindh, Khyber Pakhtunkhwa and Balochistan retirees, while Punjab proposed 3.5%. Sindh has notified its 7% pension rise with effect from 1 July 2026.

Key takeaways

The federal government, Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan all announced a 7% salary increase for serving employees in their 2026-27 budgets.
A 7% pension rise was announced for federal, Sindh, Khyber Pakhtunkhwa and Balochistan retirees, while Punjab proposed a 3.5% pension increase.
The Sindh Finance Department has notified a 7% pension increase effective from 1 July 2026, including family pensions.
The federal cabinet approved merging the 2022 and 2025 ad hoc relief allowances into basic pay, bringing them into the pensionable salary base.
Khyber Pakhtunkhwa's budget includes a 50% rise in conveyance allowance and a special allowance increase from Rs6,000 to Rs10,000.

Last updated: 8 October 2026

The salary increase 2026-27 Pakistan picture is now clear for most public servants: the federal government and all four provinces announced a 7% pay rise in their 2026-27 budgets. Pensions are a different story. Punjab's budget proposed half the pension rise announced elsewhere, and Sindh has since confirmed its pension increase in a formal notification. This guide sets out each government's figures side by side, explains what the ad hoc relief merger means for your basic pay, and lists the steps to check your own payslip.

How much is the salary increase in 2026-27 in Pakistan?

The 2026-27 budgets of the federal government and of Punjab, Sindh, Khyber Pakhtunkhwa (KP) and Balochistan all announced a 7% salary increase for serving government employees. The rate is identical everywhere; what differs is the treatment of pensions and allowances.

At federal level, the federal cabinet, in a special meeting chaired by Prime Minister Shehbaz Sharif, endorsed the 7% pay rise as part of the 2026-27 budget package, according to The Nation. The provinces then presented their own budgets, each proposing the same headline figure for its own workforce.

Remember that each government pays its own staff. A federal employee posted in Lahore is paid under the federal decision, while a Punjab teacher in the same city is paid under the Punjab budget.

Salary increase 2026-27 Pakistan: federal and provincial rates compared

The quickest way to see where you stand is to find your employer below. Figures are those announced in the 2026-27 budgets; only the Sindh pension rise is confirmed here as formally notified, so check your own notification for final rates.

Federal government: 7% salary increase and 7% pension increase, approved by the federal cabinet; the 2022 and 2025 ad hoc relief allowances are to be merged into basic pay.
Punjab: 7% salary increase and a 3.5% pension increase, proposed in the Rs5.9 trillion provincial budget presented by Finance Minister Mian Mujtaba Shuja-ur-Rehman.
Sindh: 7% salary increase and 7% pension increase; the Sindh Finance Department has notified the pension rise with effect from 1 July 2026.
Khyber Pakhtunkhwa: 7% salary and pension increase, plus the merger of the 2023 and 2025 ad hoc relief allowances into basic pay and higher conveyance and special allowances.
Balochistan: 7% salary and pension increase, which APP reported was on the federal model.

The standout difference is Punjab's pension figure. Punjab's budget proposed a 3.5% rise for its retirees, while 7% was announced for retired federal, Sindh, KP and Balochistan employees.

Has the Sindh pension increase been notified?

Yes. The Sindh Finance Department has issued a formal notification raising monthly pensions for retired provincial employees by 7%, effective from 1 July 2026, as reported by TechJuice.

The notification covers all eligible retirees. Family pensioners and those paid under the gratuity scheme are also covered. TechJuice reported that the salary notification for serving Sindh employees had been issued before the pension notice. At the time of that report, a separate notification on ad hoc relief and conveyance allowance for serving staff was still awaited, so Sindh employees should watch for that document before assuming every allowance change has taken effect.

What does merging ad hoc relief into basic pay mean?

Merging ad hoc relief allowances into basic pay makes those amounts part of your basic salary, and in the federal case part of the pensionable salary base. The Nation said this is expected to bring long-term benefits.

The federal cabinet approved folding two allowances into the basic pay structure: the 2022 ad hoc relief (15%) and the 2025 ad hoc relief (10%). Federal employees close to retirement should ask their accounts office how the merged amounts appear on their pay and pension records.

KP's budget proposes a similar merger for its own allowances from 2023 and 2025, according to Aaj News. For KP employees, the budget also includes:

a 50% increase in conveyance allowance;
a rise in the special allowance from Rs6,000 to Rs10,000;
a new house requisition allowance for secretariat employees.

How to calculate your 2026-27 salary increase

Start with the figure your government applies the 7% to, then add any allowance changes for your province. The exact base is set out in the relevant finance department notification, so treat any online calculator as a rough guide only.

Confirm your employer. Check whether you are a federal or provincial employee; your payslip and appointment letter will show this.
Find your notification. Read the 2026-27 pay notification from the federal Finance Division or your provincial finance department, and note what the percentage is applied to.
Work out the rise. As a simple illustration, 7% of Rs50,000 is Rs3,500 and 7% of Rs100,000 is Rs7,000. Use the base stated in your notification, not these sample figures.
Add allowance changes. KP employees, for example, should include the higher conveyance and special allowances where they apply.
Check arrears. If the increase reaches your account later than its effective date, confirm with your accounts office whether arrears will be paid.

Pensioners can follow the same steps using their gross pension: 7% for federal, Sindh, KP and Balochistan retirees, and 3.5% for Punjab retirees.

Common mistakes when checking your pay rise

Most confusion over the salary increase 2026-27 Pakistan announcements comes from mixing up federal and provincial rules or relying on screenshots instead of notifications.

Using the wrong government's rate. Punjab pensioners in particular should not expect the 7% pension rise announced for federal retirees.
Treating budget speeches as final. A budget announcement sets the policy; the finance department notification is what your accounts office follows.
Misreading the allowance merger. Merging ad hoc relief into basic pay changes how your pay is structured; check your payslip line by line rather than assuming a new allowance.
Trusting unofficial pay charts. Charts shared on social media can mix years and scales. Compare them with the official notification before relying on them.

What this means for government employees and job seekers

For serving staff, the 2026-27 budgets announced a uniform 7% pay rise and, at federal level, a merger of ad hoc relief into the pensionable base. For retirees, the province matters: Punjab's budget proposed 3.5%, while 7% was announced elsewhere.

For job seekers weighing a government post, the increase lifts current public-sector pay. Balochistan's finance minister, Shoaib Nosherwani, also said during the 2026-27 budget session that the government plans a Comprehensive District Livelihood Plan to create employment opportunities for young people in every district, according to the Associated Press of Pakistan (APP).

For related reading on Jobsiz, see BPS 17 Salary in Pakistan 2026: Pay and Allowances, Minimum Wage Pakistan 2026: Province-by-Province Rates and HEC TTS Salary 2026: New Pay Scales for University Faculty.

Frequently asked questions

How much salary increase was announced in budget 2026-27 in Pakistan?

The 2026-27 budgets announced a 7% salary increase for government employees. The federal government and all four provinces, Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan, announced the same 7% rate for serving staff.

What is the pension increase for 2026-27 in Pakistan?

A 7% pension increase was announced for federal, Sindh, Khyber Pakhtunkhwa and Balochistan retirees for 2026-27. Punjab's budget proposed a smaller 3.5% rise for its pensioners.

Is the Sindh pension increase 2026 notified?

Yes. The Sindh Finance Department has notified a 7% increase in monthly pensions for retired provincial employees, effective from 1 July 2026. Family pensioners and those paid under the gratuity scheme are also covered.

Is ad hoc relief allowance merged into basic pay in 2026-27?

The federal cabinet approved merging the 15% ad hoc relief allowance of 2022 and the 10% allowance of 2025 into basic pay. Khyber Pakhtunkhwa's budget proposes merging its 2023 and 2025 allowances. The Nation said the federal merger is expected to bring long-term benefits through the pensionable salary base.

Why is the Punjab pension increase lower than other provinces?

Punjab's 2026-27 budget proposed a 3.5% pension increase alongside a 7% salary rise. The reports used for this guide do not give a reason for the lower pension figure, so Punjab retirees should rely on the provincial notification for the final rate.

How do I calculate my 7% salary increase?

Multiply the base stated in your pay notification by 0.07. For example, 7% of Rs50,000 is Rs3,500. Check your federal or provincial notification to confirm which pay figure the percentage applies to.

Sources

This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published 8 October 2026. We update stories when new verified information becomes available.

Salary Increase 2026-27 Pakistan: Federal and Provincial Rates