The Federal Government of Pakistan has officially notified a 7% salary increase for civil servants from Basic Pay Scale (BPS) 1 to BPS-22, with the revised salaries taking effect from July 1, 2026.

The notification implements the salary package announced in the Federal Budget 2026–27 and introduces revised pay scales after incorporating previous adhoc relief allowances into employees' basic pay.

The Ministry of Finance has issued the necessary notifications, making the updated salary structure applicable across federal government departments.

7% Salary Increase Comes into Effect

According to the official notification, all eligible federal government employees from BPS-1 to BPS-22 will receive a 7% increase in salary, effective from July 1, 2026.

The salary adjustment forms part of the federal government's annual budgetary measures aimed at revising public-sector compensation.

Adhoc Relief Allowances Merged into Basic Pay

One of the most significant changes introduced through the notification is the merger of previous adhoc relief allowances into employees' basic salaries.

The following allowances have now been incorporated into basic pay:

• 15% Adhoc Relief Allowance (2022)
• 10% Adhoc Relief Allowance (2025)

Merging these allowances into the basic pay results in revised pay scales for all federal government employees covered under the Basic Pay Scale system.

Why Is the Merger Important?

The incorporation of adhoc relief allowances into basic pay can have broader implications beyond monthly salaries.

Since many government benefits are calculated based on basic pay, the revised structure may influence:

• Annual salary increments
• Pension calculations (where applicable)
• Leave encashment
• Retirement-related benefits
• Other allowances linked to basic salary

The exact impact may vary depending on applicable service rules and employee categories.

Who Will Benefit?

The revised salary structure applies to federal government employees serving under:

• BPS-1
• BPS-2 to BPS-16
• BPS-17 to BPS-22

Employees across ministries, divisions, attached departments, and other eligible federal institutions covered by the notification are expected to receive salaries under the updated pay scales.

Ministry of Finance Issues Notifications

The Ministry of Finance has formally issued the required notifications, making the revised salary package effective from July 1, 2026.

Government departments are expected to implement the updated pay scales in accordance with the notified rules and applicable payroll procedures.

Impact on Government Employees

The salary revision is expected to provide financial relief to federal employees at a time when many households continue to face rising living costs.

Supporters of the revision view it as a positive step toward improving public-sector compensation, while some observers note that inflation and increasing household expenses remain important factors affecting employees' purchasing power.

The long-term effect of the revised salary structure will depend on broader economic conditions, inflation trends, and future government pay policies.

Conclusion

The federal government's official notification confirms the implementation of a 7% salary increase for BPS-1 to BPS-22 civil servants, effective July 1, 2026. Along with the merger of the 2022 and 2025 Adhoc Relief Allowances into the basic pay, the revised pay scales introduce important changes to Pakistan's federal salary structure.

The updated framework will now serve as the official salary structure for eligible federal government employees across the country.

Disclaimer: This article is for informational purposes only and is based on publicly available reports. Salary rules, service conditions, and government notifications may vary. Employees should consult official notifications and their respective departments for complete implementation details.