Government employees are set to receive a 10 percent salary increase in Budget 2026-27, as compensation measures are being finalized ahead of the federal budget announcement.

The federal budget size is expected at around Rs. 18 trillion, with new tax measures of approximately Rs. 220 billion under consideration, according to official budget documents.

Income tax relief for salaried individuals is also expected, particularly for those earning between Rs. 1.2 million and Rs. 2.4 million annually.

Officials are also reviewing a possible reduction in the super tax, while the corporate income tax rate is expected to remain unchanged.

On the expenditure side, non-development spending for federal ministries may be set at around Rs. 1,070 billion, while pension allocations are projected to exceed Rs. 1,100 billion.