The federal government has proposed a range of relief measures for civil servants, armed forces personnel, and pensioners in Budget 2026-27, including a 7 percent ad hoc relief allowance for employees and a 7 percent increase in pensions, sources told ProPakistani.
According to sources, the proposed measures will likely take effect from July 1, 2026, and are aimed at partially offsetting the impact of inflation on government employees and retirees.
The government has proposed introducing new Pay Scales-2026 by merging the Adhoc Relief Allowance 2022, which currently stands at 15 percent of basic pay, and the Adhoc Relief Allowance 2025, which is paid at 10 percent of basic pay, subject to specified conditions.
In addition, all federal government employees are proposed to receive a 7 percent Adhoc Relief Allowance on their running basic pay.
Sources said the government has also proposed extending the Disparity Reduction Allowance 2026, calculated at 15 percent of basic pay as of June 30, 2022, to employees from BPS-1 to BPS-22 who are already receiving the allowance under existing terms and conditions.
Several allowances have also been revised. The conveyance allowance is proposed to be increased by 50 percent, while the Constant Attendant Allowance for civil armed forces personnel is proposed to rise from Rs. 7,000 to Rs. 30,000 per month.
The government has also proposed revisions to a number of special allowances for employees of the Pakistan Coast Guards, Immigration and Passport Department, National Counter Terrorism Authority (NACTA), National Forensics and Investigations Agency (NFIA), Frontier Constabulary, National Highways and Motorway Police (NHMP), and the National Police Academy.
According to the proposals, officers and staff working in the Cabinet Division and Cabinet Committees wings could see their special pay revised from Rs. 6,000 to Rs. 20,000 per month.
Sources said the government has also proposed increasing the Special Conveyance Allowance from Rs. 6,000 to Rs. 10,000 under existing terms and conditions.
For pensioners, the government has proposed a 7 percent increase in baseline pensions in line with the Finance Division’s pension policy framework.
The proposed relief package comes as the government seeks to provide support to public-sector employees and retirees amid persistent inflationary pressures, while balancing fiscal constraints under its broader economic reform programme.
The measures will be subject to final approval as part of the federal budget process and are expected to be formally announced during the budget presentation for fiscal year 2026-27.