ISLAMABAD – In another astounding development, the federal cabinet approved to hike the salary of government employees by 10%. The pension of retired civil servants also saw an increase of 7% increase. Although the cabinet has approved the federal budget for fiscal year 2025-26, matters related to the salaries of government employees continued to be debated.
Even after a 10% increase in salaries of government employees, PPP, a key coalition partner of the ruling party, PML-N, demanded a further hike in salaries, on which the Federal Finance Minister Muhammad Aurangzeb said that the government aims at providing relief to the common man in the federal budget. Thus, a 10% increase was proposed.
Prime Minister Shehbaz Sharif rejected the proposal of hiking salaries by 6% and stated that salaries should at least be hiked by 10%, which was agreed upon by the cabinet and the premier.
