LAHORE – Punjab government on Monday announced considerable salary increase for its employees, with 10% hike in pay and a rise in pensions by 5% as part of the provincial budget for the fiscal year 2025-26.
Alongside this, the minimum wage across the region has been raised to Rs40,000, marking a major boost for government workers. Finance Minister Mujtaba Shujaur Rehman unveiled the Rs5.3 trillion budget, emphasizing that the salary revisions aim to improve the welfare of public servants and align with the development goals set by Chief Minister Maryam Nawaz.
Punjab Budget 2025-26
“This budget reflects our commitment to support the hardworking employees of Punjab,” said the finance minister, highlighting that despite budget constraints, operational expenses have only increased by 3% after factoring in salary and pension increments.
Senior Minister Marriyum Aurangzeb noted on social media that the Annual Development Programme (ADP) has increased by 47%, showing that while development spending grows, the government has managed to keep operational costs in check.
The salary hike and minimum wage adjustment are expected to provide much-needed relief and boost morale among Punjab’s government workforce.
Earlier federal government approved a 10pc salary increase for employees in grades 1 to 22 and a 7pc pension hike for retirees for FY 2025-26.
Meanwhile, Sindh government approved 12% salary raise for grades 1 to 16, 10% for grades 17 to 22, and an 8% pension increase for retired provincial employees in their budget, slightly higher than the federal pension hike.
