7% Salary Increase Approved for Government Employees in Pakistan Budget 2026–27

The federal cabinet has approved an increase in the salaries of government employees as part of the upcoming federal budget for 2026–27, according to official sources.

According to the reports, the government employees received a proposed 7 percent hike in their salary, which brings some relief in the time of a soaring inflation rate and the costs of living in the country.

This decision is taken at federal cabinet meeting led by Prime Minister Shehbaz Sharif, during which various budget documents were also approved and the draft Finance Bill for the fiscal year 2026–27 was also agreed.

The salary hike is part of a series of fiscal adjustments to balance relief for the public sector with economic stability, officials said. Additional information on allowances and updated salaries will be provided in the final presentation of the budget.

The approval follows a month of salary demands by government workers due to the inflation trends.