TESCO increases salaries and allowances of employees

Areesha Ahmadzai August 28, 2026 Pakistan

The Tribal Areas Electricity Supply Company (TESCO) has approved an increase in salaries and several allowances for its employees.

The decision includes an Ad Hoc Relief Allowance of 7 per cent on the running basic salary of employees. This means eligible workers will receive additional financial relief based on their current basic pay.

Employees to receive higher allowances

TESCO has also approved a 15 per cent Disparity Reduction Allowance for employees working in BPS-1 to BPS-22.

However, this allowance will not be calculated using the employees’ current basic salaries. According to the notification, the calculation will be based on the basic pay as of June 30, 2022.

Another major change involves the conveyance allowance. TESCO has approved a 50% increase in conveyance allowance for its employees. The increase will apply from July 1, 2026.

Employees with disabilities will receive additional relief. Their monthly conveyance allowance has been increased from Rs6,000 to Rs10,000.

Government employees also get salary relief

TESCO’s decision follows salary and pension relief announced by the federal government in the 2026-27 budget.

While presenting the federal budget in the National Assembly, Finance Minister Muhammad Aurangzeb announced a 7 per cent increase in the salaries of government employees.

The government announced a 7% increase in pensions for retired employees, providing financial relief to serving and retired government workers.

Additionally, the government announced an increase in the minimum wage for workers. According to the new budget, the minimum wage will rise by 10 per cent during the new financial year.

Earlier, the Sindh Cabinet increased the provincial minimum wage by 7.5 per cent. It also approved several other decisions related to public services and development.

The decisions were made during a cabinet meeting chaired by Sindh Chief Minister (CM) Syed Murad Ali Shah at the CM’s House.

Provincial ministers, advisers, senior officials and the chief secretary attended the meeting.

Read more: Salaries of govt employees increased