The Senate Standing Committee on Finance has proposed 50% salary and 20% pension increases as part of its recommendations for the 2025-26 federal budget. If accepted, these changes will bring much-needed relief to many families struggling with high inflation and daily expenses.
50% Salary and 20% Pension Recommendations by Senate Committee
The Senate Finance Committee has recommended:
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50% salary increase for government employees
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20% pension increase for retired government workers
These are much higher than the government’s earlier proposal of a 10% salary hike and 7% pension increase. The committee believes that this increase is necessary to support employees against rising food, utility, and transport costs.
Other Important Budget 2025 Recommendations
Here are the key suggestions that can directly benefit you:
1. Daily Wage Workers
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All daily wage workers should be made permanent.
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Minimum monthly wage should be increased from Rs. 37,000 to Rs. 50,000.
2. Solar Panel Tax Removed
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The 18% sales tax on solar panels should be removed.
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This will make solar energy cheaper for homes and businesses.
3. Electricity Relief
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No debit service fee for users consuming up to 200 electricity units per month.
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This will help reduce monthly electricity bills for small households.
4. Vehicle Sales Tax Reduced
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Sales tax on 850cc vehicles should be reduced from 18% to 10%.
Also Read: 30% Disparity Reduction Allowance 2025 BPS-1 To BPS-22 Govt Employees
Tax Reliefs and Exemptions Proposed
✅ Income Tax Exemption
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No income tax for people earning up to Rs. 1.2 million per year.
✅ Zero Tax on Stationery & Homeopathic Medicine
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No sales tax on stationery items like notebooks and pens.
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Homeopathic medicines tax reduced from 18% to just 1%.
✅ Online Shopping
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Remove the 2% tax on online purchases to promote e-commerce.
Tax on High Agricultural Income
The committee recommends new taxes on agricultural income:
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10% tax on farm income exceeding Rs. 50 million per year.
Also Read: 8171 Registration Check Online CNIC
Chicken, Juices & Beverages
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Remove 3% extra tax on chicken (grand chicken).
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Excise duty on juices and beverages reduced from 15% to a lower percentage (exact figure pending).
Chemicals & Dyes
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Committee recommends applying sales tax on dyes and chemicals used in industry.
FAQs:
Q: Will the 50% salary increase be approved?
A: The recommendation has been sent to the federal government. If accepted, it will be included in the final budget 2025-26.
Q: When will the new salary and pension increases start?
A: If approved, the increase will apply from July 1, 2025.
Q: What is the new minimum wage in Pakistan 2025?
A: The proposed minimum wage is Rs. 50,000 per month, up from Rs. 37,000.
Q: Is the sales tax on solar panels removed?
A: The Senate committee has recommended removing it, but it needs final government approval.
Q: What is the pension increase for 2025?
A: A 20% pension increase has been recommended for retired employees.
Conclusion
The Senate Committee’s budget suggestions are designed to help low- and middle-income Pakistanis. A 50% salary increase, 20% pension hike, higher minimum wage, and tax relief on solar panels, medicine, and stationery could bring big benefits.
If these proposals are accepted by the federal government, millions of employees and pensioners will get more financial relief starting from July 2025. Keep following official budget updates for confirmation.