How much salary hike is expected for govt employees in Budget 2026-27?

ISLAMABAD – The federal government is mulling a 10 to 15 percent increase in salaries for government employees in the upcoming 2026-27 budget. Prime Minister Shehbaz Sharif held consultations on the next fiscal budget during an informal meeting at the PM House, which was not open to media coverage. The meeting reviewed key budgetary matters, including the Public Sector Development Programme (PSDP), taxation measures, and proposed increases in salaries and pensions for government employees. Finance Minister Muhammad Aurangzeb briefed the prime minister on important aspects of the budget. Reports said that a salary increase between 10 and 15 percent has been proposed in line with inflation trends. However, the prime minister directed that a detailed working be carried out based on available financial resources to determine the level of relief that can be provided to employees. A final decision regarding salary increases will be made by Prime Minister Shehbaz Sharif after consultations with coalition partners. Budget 2026-27 Date The federal government will present its budget for fiscal year 2026-27 on June 10, Deputy Prime Minister Ishaq Dar said on Wednesday. Last month, President Asif Ali Zardari summoned budget session on June 5. However, it was later delayed to finalise some fiscal measures with the International Monetary Fund. “It was unanimously agreed to recommend to Prime Minister Muhammad Shehbaz Sharif @CMShehbaz that the Budget for fiscal year 2026–2027 be announced on Wednesday, 10 June 2026,” DPM office said in a social media post.