LAHORE – The Punjab Assembly on Monday approved a 10% salary increase for government employees and a 5% pension raise for retired officials as part of the provincial budget for the fiscal year 2025–26.
Announcing the measure during the budget session, Finance Minister Mujtaba Shuja-ur-Rehman said the PML-N and PPP coalition government aimed to provide financial relief amid ongoing inflation and economic challenges. “The government acknowledges the pressure on employees and pensioners and has introduced a prudent yet compassionate increase,” he stated.
The salary and pension hikes are included in the Rs2,706.5 billion non-development expenditure, which covers wages, pensions, and administrative costs. The raise will apply to all provincial government staff and retired public servants.
These relief measures come alongside major development allocations, including Rs72 billion for the Nawaz Sharif Cancer Hospital in Lahore and Rs148 billion for education sector initiatives such as classroom upgrades and expanded scholarships.
Despite strong opposition protests during the session—marked by slogan chanting and claims that the budget is “politically motivated”—government members defended the proposals as necessary steps toward public welfare in a constrained economic climate.
