Pakistan Budget 2026–27

Complete breakdown for government employees — salary, pension, taxes and impact analysis.

Calculate Your Increase Pension Calculator
💰
Salary Increase
25%
All BPS grades — effective July 1, 2026
🏛️
Pension Increase
15%
All retired government employees
💼
Tax-Free Limit
₨600K
Annual income tax-free threshold raised
🏥
Health Insurance
₨1M
For all federal government employees

💰 Salary Impact by BPS Grade

Monthly salary increase based on minimum basic pay for each grade (25% increase):

BPS Grade Current Min. Basic Increase (+25%) New Basic Pay
BPS-1 ₨32,000 +₨8,000 ₨40,000
BPS-5 ₨38,800 +₨9,700 ₨48,500
BPS-7 ₨43,000 +₨10,750 ₨53,750
BPS-9 ₨48,000 +₨12,000 ₨60,000
BPS-11 ₨53,800 +₨13,450 ₨67,250
BPS-14 ₨65,200 +₨16,300 ₨81,500
BPS-16 ₨74,800 +₨18,700 ₨93,500
BPS-17 ₨99,000 +₨24,750 ₨123,750
BPS-18 ₨140,000 +₨35,000 ₨175,000
BPS-19 ₨190,000 +₨47,500 ₨237,500
BPS-20 ₨240,000 +₨60,000 ₨300,000
BPS-21 ₨300,000 +₨75,000 ₨375,000
BPS-22 ₨360,000 +₨90,000 ₨450,000
Use our Salary Calculator to see your complete package with all allowances.

🏛️ Pension Impact

Monthly pension increase at 15% for common pension amounts:

Current Pension Increase (+15%) New Pension Annual Extra
₨20,000 +₨3,000 ₨23,000 +₨36,000
₨30,000 +₨4,500 ₨34,500 +₨54,000
₨45,000 +₨6,750 ₨51,750 +₨81,000
₨60,000 +₨9,000 ₨69,000 +₨108,000
₨80,000 +₨12,000 ₨92,000 +₨144,000
₨100,000 +₨15,000 ₨115,000 +₨180,000
₨150,000 +₨22,500 ₨172,500 +₨270,000

📋 Key Budget Announcements

💰
25% Salary Increase
All government employees across all BPS grades receive a 25% increase in basic pay, effective July 1, 2026.
🏛️
15% Pension Increase
All retired civil and military pensioners receive a 15% increase on their gross pension amount.
💼
Tax-Free Limit Raised to ₨600K
Annual income tax-free threshold increased from ₨400,000 to ₨600,000 per year.
🏥
₨1 Million Health Insurance
All federal government employees get health insurance coverage of ₨1 million for themselves and their families.
📚
Education Allowance Doubled
Children education allowance for government employees doubled from ₨1,500 to ₨3,000 per child per month.
🏠
HRA for Remote Areas
House Rent Allowance for employees posted in remote and difficult areas increased by 30%.

Frequently Asked Questions