The Federal Government’s Budget 2026-27 is set to provide significant financial relief to government employees, armed forces personnel, and pensioners through a series of salary and allowance increases effective from July 1, 2026.
Under the proposed package, new pay scales will be introduced, with the 15% Adhoc Relief Allowance granted in 2022 and the 10% Adhoc Relief Allowance awarded in 2025 being merged into the basic salary. This adjustment is expected to increase employees’ overall pay structure and future benefits linked to basic pay.
In addition, all federal government employees will receive a 7% Adhoc Relief Allowance (ARA) on their running basic pay. To address long-standing pay disparities, the government has also approved a 15% Disparity Reduction Allowance for employees from BPS-1 to BPS-22.
The budget package includes a 50% increase in Conveyance Allowance, providing additional support amid rising transportation costs. Several department-specific allowances have also been enhanced. For Civil Armed Forces personnel, the Constabulary Attendant Allowance has been increased from Rs. 7,000 to Rs. 30,000 per month.
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Similarly, the Special Pay for officers and staff of the Cabinet Division has been raised from Rs. 6,000 to Rs. 20,000 per month. Employees of the National Highways & Motorway Police (NH&MP) will benefit from a major increase in their Special Allowance, which has been raised from 10% to 50% of basic pay.
The Special Conveyance Allowance has also been enhanced from Rs. 6,000 to Rs. 10,000. Meanwhile, pensioners are set to receive a 7% increase in their baseline pension.
The relief package aims to ease financial pressure on public-sector employees and retirees while improving compensation across various government departments.
