Punjab govt proposes 10% salary increase, 5% pension hike in FY26 budget

June 17, 2025 (MLN): The Punjab government, in its budget for FY2025- 26, has proposed a 10% increase in the salaries of government employees and a 5% hike in pensions for retired employees.

The decision was announced by Finance Minister Mian Mujtaba Shuja-ur-Rehman during the budget session.

It forms part of a broader effort by the PML-N and PPP coalition government to provide financial relief to public sector workers amid persistent inflation and ongoing economic uncertainty, as per the press release issued.

“The government recognizes the financial strain on employees and pensioners and has responded with a responsible and compassionate increase,” said Shuja-ur-Rehman while presenting the budget.

These increases fall under the Rs2.706 trillion non-development expenditure allocation, which also covers funding for salaries, pensions, and administrative costs.

Alongside these financial measures, the budget also includes major development initiatives, such as an allocation of Rs72 billion for the Nawaz Sharif Cancer Hospital in Lahore and Rs148bn for education sector development.

The education budget focuses on new classroom construction and the expansion of scholarship programmes.