In the Punjab budget 2026-27, a 7 percent increase in the salaries of government employees and a 3.5 percent increase in pension is proposed.
LAHORE – The Punjab government approved relief measures for government employees and pensioners and announced a 7 percent increase in salaries and 3.5 percent increase in pension under the new fiscal plan.
Finance Minister Mujtaba Shujaur Rehman while presenting the budget said that the aim of this initiative is to reduce the financial pressure on government employees. The revised salary and pension packages will come into effect after the formal approval of the budget, potentially benefiting thousands of employees and retirees across the province.
The announcement reflects the federal government’s proposed budget for 2026-27, which includes a 7% increase in salaries, a corresponding increase in pensions, and a 10% increase in the minimum wage, reflecting a broader effort to reduce the burden of inflation across the country.
Chief Minister Maryam Nawaz termed it as a “budget of hope” and said that the government is focusing on providing relief from its own resources while strengthening internal revenue collection. He directed the Punjab Revenue Authority to intensify efforts to improve financial efficiency.
He also expressed confidence that the budget is in line with public expectations and will continue the citizen-centric policy approach. The Chief Minister appreciated the collective efforts behind the financial plan and acknowledged the key officials involved in its preparation, including senior ministers and top bureaucrats.
Inflation continues to pressure households, the government is calling these measures timely economic relief. However, the actual impact will be determined only after the final approval and implementation of the budget.
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