7% Salary Increase Pakistan 2026-27 Announced in Federal Budget

Pakistan – (Web Desk) – The federal government has announced a 7% salary increase Pakistan 2026-27 for all public sector employees. Finance Minister Muhammad Aurangzeb made this announcement during his budget speech in the National Assembly on Friday.

This salary hike will directly benefit millions of federal government employees across the country. Along with the salary raise, retired government workers will also receive a 7% increase in their monthly pensions.

The government has also proposed a 10% increase in the minimum wage. This step is aimed at providing some financial relief to low-income workers who have been struggling with rising living costs.

The budget also brings good news for salaried taxpayers. The government has proposed income tax relief across four different slabs. On top of that, the surcharge on the salaried class has been completely abolished.

Here is a simple breakdown of the new tax slabs:

— Earning Rs2.2M to Rs3.2M yearly — pay Rs116,000 plus 20% on the extra amount

— Earning Rs3.2M to Rs4.1M yearly — pay Rs316,000 plus 25% on the extra amount

— Earning Rs4.1M to Rs5.6M yearly — pay Rs541,000 plus 29% on the extra amount

— Earning Rs5.6M to Rs7M yearly — pay Rs976,000 plus 32% on the extra amount

Speaking on the floor of the National Assembly, Finance Minister Aurangzeb said Pakistan has regained its standing in the world. He added that other countries now listen to Pakistan and value its friendship.

The session was lively, with opposition members raising slogans and PTI lawmakers bringing placards into the house. Treasury members welcomed Prime Minister Shehbaz by thumping their desks.

This budget focuses on giving some financial breathing room to working Pakistanis. Whether you are a government employee, a pensioner, or a salaried professional, this budget has something in it for you.