ISLAMABAD: The government has increased the salaries of federal employees (Grade-1 to Grade-22) by 10 per cent, while the retired government servants will be eligible for a 7pc pension raise in light of the budget for the financial year 2025-26 tabled on Tuesday.

The government also introduced pension reforms, in a bid to reduce the exp­e­nditure under this head, as it eliminated multiple allowances and limited the family pension period to 10 years in case of the death of the actual beneficiary.

Interestingly, the government did not announce the minimum wage — currently at Rs37,000 — in the federal budget. Previously, the federal government would set a minimum wage threshold and provinces would also follow suit. Moreover, the differently-abled employees would be eligible for a monthly conveyance allowance........

© Dawn Business