Islamabad: A meeting of the federal cabinet chaired by Prime Minister Shehbaz Sharif has begun, during which a decision is expected on increasing the salaries and pensions of government employees.
According to sources, the cabinet will also approve the 2026–27 federal budget. A proposal to raise government employees’ salaries in two phases is under consideration.
Sources further said that employees in Grades 1 to 16 are likely to receive a comparatively higher increase in salaries. A final decision is expected during the cabinet meeting.
On the other hand government employees from grade 17 and above will get less raise in salaries as compared to employees from grade 1 to 16.
Meanwhile, A protest by government employees ahead of the federal budget session turned tensed outside the Pak Secretariat as demonstrators gathered to press the government for the acceptance of their demands regarding salaries, allowances, and pension-related issues.
Employees from different provinces assembled in Islamabad and moved toward Parliament House, where they planned to continue their protest during the presentation of the federal budget for 2026-27.
The employees were demanding the immediate implementation of all provisions of the March 10, 2025 agreement. They called for the merger of all ad hoc relief allowances into basic pay, the introduction of a new Pay Scale 2026, and a 100 per cent Ad Hoc Relief Allowance for the upcoming fiscal year.
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