The government of Punjab has announced an increase in the salary of the public sector employees.
The Punjab government has clarified that the recently announced 7% salary increase for provincial government employees will be implemented under the revised pay scales from July 2026.
According to the clarification, employees’ salaries will first be recalculated based on the new pay scales, after which a 7% ad hoc relief allowance will be applied to the revised basic pay.
Officials said the measure is intended to provide relief to government employees amid rising inflation.
Relevant departments have been directed to complete the necessary administrative process to ensure the revised salaries are paid on time.
The clarification follows reports about how the salary increase would be calculated under the new pay structure.
Meanwhile, employees have welcomed the increase but said additional relief would be needed given the continuing rise in the cost of living.
The announcement comes after the federal government unveiled a similar package under the 2026-27 budget. Federal employees will receive a 7% ad hoc relief allowance, a 15% Disparity Reduction Allowance (DRA), and a 50% increase in conveyance allowance.
Federal Finance Secretary Imdad Ullah Bosal also said that two previous ad hoc relief allowances were granted: 15% in 2022 and 10% announced in 2025.
This increase would be merged into employees’ basic pay as part of the revised salary structure.
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