Increase in salaries and allowances of government employees, new pay scales issued
Published 2 hours ago | By Editorial Desk
The federal government has issued a notification for the increase in basic salaries and allowances for government employees and has also issued revised new pay scales of government employees under an office memorandum issued by the Ministry of Finance.
The office memorandum issued by the Ministry of Finance states that the revision in basic salaries and allowances for federal government employees has been implemented and introduced from July 1, 2026.
The office memorandum states that the revised new basic pay scales 2026 have merged the ad hoc relief allowances 2022 and 2025 and the salaries of existing employees will be fixed in the new pay scales on a point-to-point basis from July 1, 2026, while the annual increment will continue to be given on December 1 every year as per the existing rules.
The Ministry of Finance stated that from July 1, 2026, the ad hoc relief allowances 2022 and 2025 will be considered terminated, while federal government civil servants, civilian employees receiving salaries from defense estimates, contract employees and other related employees will be given 7 percent ad hoc relief allowance on the running basic pay of BPS 2026.
It has been clarified that this allowance will be subject to income tax and other conditions related to its application have also been listed in the office memorandum.
The Ministry of Finance has also directed that all ministries, divisions and departments should obtain a written and irrevocable option from their employees within 30 days whether they want to draw salary under the Basic Pay Scale 2022 or want to draw salary under the new Basic Pay Scale 2026.
It has been further stated that employees who do not give the option within the prescribed period will be automatically considered to have opted for the Basic Pay Scale 2026.
The office memorandum further stated that an inquiry committee will be set up in the Ministry of Finance to address possible irregularities arising during the implementation of the new pay scales.
Notification of increase in conveyance allowance for federal government employees also issued
The federal government has also increased the conveyance allowance received by federal government employees of grades one to 22, the special conveyance allowance of special employees and has also approved the provision of 15 percent disparity allowance to federal employees, which will be available on the basic salary of 2022.
According to the document available to Express News, several notifications have been issued by the Ministry of Finance. The notification of increase in the usual conveyance allowance received by federal employees states that the conveyance allowance for employees of grades one to four has been increased from Rs 1,785 to Rs 2,678 per month.
According to the notification, the conveyance allowance for employees in grades 5 to 10 has been increased from Rs 1932 to Rs 2898 per month, while for employees in grades 11 to 15, the conveyance allowance has been increased from Rs 2856 to Rs 4284 per month.
Similarly, the conveyance allowance for employees above grade 16 has been increased from Rs 5,000 to Rs 7,500 per month.
The second notification stated that it has also approved the provision of 15 percent disparity allowance to government employees on the basic pay scales as of June 30, 2026. This allowance will be available to employees eligible for disparity allowance on the existing terms and conditions. Through the third notification, from July 1, the government has also increased the special conveyance allowance for special government employees from Rs 6,000 to Rs 10,000 per month. This special conveyance allowance will be additional to the usual conveyance allowance.
