The Punjab government has officially notified the implementation of the Basic Pay Scales (BPS) 2026 for provincial government employees and approved a 3.5% increase in pensions for eligible civil pensioners.
According to notifications issued by the Punjab Finance Department, both decisions will take effect from 1 July 2026.
Under the new notification, all serving government employees currently drawing salaries under Basic Pay Scales 2022 will be shifted to the Basic Pay Scales 2026. Their salaries will be fixed according to the revised pay scales.
The government has clarified that the annual increment system will remain unchanged, with employees continuing to receive their yearly increment on 1 December under the existing rules.
In a separate notification, the Punjab government has also approved a 3.5% increase in net pension for civil pensioners who retired before 1 July 2026.
The increase will apply to the net pension excluding medical allowance.
However, government employees retiring on or after 1 July 2026 will not be eligible for this pension increase.
The Finance Department further stated that the pension hike will also apply to family pensions and other eligible pension categories in accordance with the prescribed rules.
The Punjab Finance Department has directed all relevant departments and government institutions to implement the revised pay scales and pension increase with effect from 1 July 2026.
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