The federal government has raised the minimum monthly salary for its employees to Rs. 40,700, increasing the previous minimum by Rs. 3,700.

Under the revised arrangement, federal government employees whose monthly salaries remain below Rs. 40,700 will receive a special allowance to bring their total monthly earnings up to the newly fixed minimum.

The increase will take effect retrospectively from July 1, 2026.

The decision is aimed at ensuring that no federal government employee receives a monthly salary below Rs. 40,700.

The move comes alongside the government’s broader FY2026-27 pay revisions, under which federal civil employees received a 7 percent ad hoc relief allowance on basic pay from July 1. The new minimum salary is 10 percent higher than the previous Rs. 37,000 floor.