LAHORE – Punjab Chief Minister Maryam Nawaz Sharif has approved an increase of 10 percent in salaries of the government employees in budget for next fiscal year 2025-26.
The approval was granted by the chief minister days before her government is scheduled to present the provincial budget this week.
Punjab has decided to announce the increase in salaries and pensions in line with the proposals made by the Centre in federal budget.
A day earlier, Finance Minister Muhammad Aurangzeb presented the federal budget with total outlay of Rs17,573 billion with focus on economic growth.
The federal government has announced 10 percent adhoc relief allowance in salaries, 7.5 percent in pensions and reduced income tax rates for the upcoming fiscal year.
Under the new tax structure, salaried persons earning up to Rs600,000 annually were exempted from income tax.
Those earning between Rs600,000 and Rs 1.2 million were required to pay 1 percent tax on the amount exceeding Rs 600,000.
For annual salaries between Rs1.2 million andRs 2.2 million, a fixed tax of Rs 6,000 and an additional 11 percent tax on the amount above Rs1.2 million was imposed.
The individuals earning Rs2.2 million to Rs3.2 million annually were required to pay a fixed tax of Rs116,000 along with a 23 percent tax on the amount above Rs2.2 million.
