Islamabad (HRNW): In the newly announced federal budget for the fiscal year 2026-27, the Federal Government of Pakistan has approved a comprehensive relief package for state employees, civil armed forces, and pensioners. This financial package introduces structural changes to basic pay scale frameworks alongside substantial hikes across multiple public allowances.
Structural Pay Scale Reforms and Ad-Hoc Mergers
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Introduction of Revised Pay Scales 2026: The government will officially introduce the New Pay Scales 2026. Under this structural alignment, the previously granted Ad-Hoc Relief Allowance 2022 (15%) and Ad-Hoc Relief Allowance 2025 (10%) will be permanently merged into the basic salary structure.
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New Ad-Hoc Relief Allowance (ARA): All federal government employees will receive a fresh 7% Ad-Hoc Relief Allowance calculated directly on their running basic pay.
Enhancements in Allowances and Sector-Specific Relief
The fiscal framework introduces notable increments across various allowances to offset economic pressures:
| Allowance / Department | Approved Amendment / Revision | Target Beneficiaries |
| Disparity Reduction Allowance 2026 | Allocated at 15% of the Basic Pay | Employees across BPS-1 to BPS-22 |
| Convenience Allowance | 50% increase over the existing sanctioned amount | All eligible federal employees |
| Constant Attendant Allowance | Enhanced from PKR 7,000 to PKR 30,000 | Civil Armed Forces personnel |
| Special Pay (Cabinet Division) | Increased from PKR 6,000 to PKR 20,000 per month | Officers and staff of the Cabinet Division |
| Special Allowance (NH&MP) | Upgraded from 10% to 50% of basic parameters | National Highway & Motorway Police (BPS-1 to 22) |
| Special Convenience Allowance | Enhanced from PKR 6,000 to PKR 10,000 | Entitled disabled/special public servants |
Relief for Pensioners and Implementation Date
Recognizing the economic constraints faced by retired public servants, the federal administration has approved a uniform 7% increase in the baseline pension for all federal pensioners.
According to the official budget presentation documentation, all the aforementioned executive relief measures, pay scale revisions, and allowance adjustments are statutorily scheduled to become fully effective from July 1, 2026.
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