The federal government has officially notified a 7 percent increase in salaries for employees from BPS-1 to BPS-22, along with revised Basic Pay Scales (BPS) and allowances, with effect from July 1, 2026.

According to notifications issued by the Ministry of Finance, the 15 percent Adhoc Relief Allowance granted in 2022 and the 10 percent Adhoc Relief Allowance announced in 2025 have been merged into employees’ basic pay, resulting in a revised pay structure across all grades.

The newly approved 7 percent salary increase will be calculated on the revised basic pay after the merger of these allowances.

The government has also approved a 50 percent increase in the Conveyance Allowance for employees in BPS-1 to BPS-22, effective from July 1, 2026, under the existing terms and conditions.

In a separate notification, the Finance Ministry introduced an Executive Allowance for officers serving in BPS-17 to BPS-22.

The revised pay package implements the compensation measures announced in the Federal Budget 2026-27 and is expected to provide additional financial support to federal government employees amid persistent inflation and rising living expenses.