In the Punjab Budget 2025-26, the government has announced a 10% increase in salaries for employees from Grade 1 to 22, and a 5% raise in pensions for retired employees. This relief package aims to support public servants during inflation and rising daily expenses.
Punjab Govt Salary Increase in Budget 2025-26
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Adhoc Relief Allowance 2025: 10% of current basic pay for all employees
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Pension Raise: 5% increase in net pension for all retired employees
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Minimum Wage Raised: From Rs. 37,000 to Rs. 40,000 per month
Also Read: 30% Disparity Reduction Allowance 2025 BPS-1 To BPS-22 Govt Employees
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No New Taxes: The 2025-26 Punjab budget is a zero-tax budget
✅ Who Will Benefit from This Increase?
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All government employees from BPS-01 to BPS-22
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All retired employees (pensioners)
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Employees working in education, police, health, administration, and more
Comparison with Other Provinces (2025-26 Budget)
| Province | Salary Increase | Pension Raise | DRA 2025 |
|---|---|---|---|
| Punjab | 10% | 5% | Not Announced |
| Federal | 10% | 7% | 30% |
| Sindh | 10%-12% | 8% | Not Specified |
| KPK | 10% | 7% | 15% |
❓FAQs
Q: Has Punjab government increased salaries in 2025?
Yes, the Punjab government has increased salaries by 10% in Budget 2025-26.
Q: How much pension has been increased in Punjab in 2025?
A 5% increase in net pension has been approved for retired employees.
Q: What is the new minimum wage in Punjab in 2025?
The minimum wage is now Rs. 40,000 per month.
Q: Will Disparity Reduction Allowance (DRA) 2025 be included?
DRA 2025 has not yet been announced in Punjab’s budget.
Q: Is there any new tax in Punjab Budget 2025-26?
No, it’s a zero-tax budget with no increase in existing tax rates.
Impact of Budget 2025-26 on Punjab Government Employees
This 10% raise is a relief, but many employees were hoping for more due to rising inflation. Unions have demanded a minimum 50% increase in salaries and pensions. There is also demand for DRA 2025, which is still under consideration.
️ Official Statement
Punjab Finance Minister Mujtaba Shuja ur Rehman said:
“This is a people-friendly budget and reflects the development vision of CM Maryam Nawaz Sharif.”
Senior Minister Marriyum Aurangzeb added:
“Operational expenses rose only by 3%, while the Annual Development Programme (ADP) was increased by 47%.”
Conclusion:
Punjab Budget 2025-26 brings:
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10% salary increase for all provincial government employees
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5% pension hike for all pensioners
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Minimum wage increase to Rs. 40,000
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No new taxes in the province