Federal Employees Reject Proposed 7% Pay Raise

Federal government employees and various public-sector labour organisations have announced protest actions against the proposed 7% salary increase contained in the Federal Budget 2026-27, contending that the adjustment is insufficient to address the continuing rise in living expenses and inflationary pressures faced by salaried households.

According to reports, representatives of employee associations argued that persistent increases in the prices of essential commodities, fuel, and utility services have substantially reduced purchasing power, while the proposed salary adjustment fails to provide meaningful financial relief.

Trade union leader Rahman Bajwa stated that government employees had anticipated a more substantial increase in compensation to offset the effects of inflation and expressed dissatisfaction with the measures announced in the federal budget.

Several labour organisations representing employees of public-sector institutions, including railway workers, personnel of the Water and Power Development Authority, municipal committees, tehsil municipal administrations, and district councils, announced plans to stage demonstrations and other protest activities in opposition to the proposed pay increase.

Union representatives maintained that available avenues for engagement had been exhausted and indicated that employees would continue public demonstrations to press the government for a revision of the salary package.

Protest leaders also announced the launch of a “Jail Bharo Tehreek,” declaring their willingness to face arrest if their demands for enhanced compensation were not addressed by the authorities.

Employee representatives cited rising prices of basic household necessities, including milk, ghee, sugar, chicken, beef, and mutton, together with increased fuel and utility costs, as major factors contributing to financial hardship among government employees.

In addition, protesters criticised the closure of Utility Stores, arguing that the outlets had historically provided important support to lower-income households through access to subsidised essential commodities.

During the demonstrations, federal employees attempted to march towards the Parliament area. However, law enforcement personnel, including police and members of the Frontier Corps, restricted access to the vicinity of Parliament House.

Following the restrictions, demonstrators established a sit-in outside Parliament and continued their protest activities amid heightened security arrangements.

Under the Federal Budget 2026-27, the government has proposed a 7% increase in salaries for serving public-sector employees as well as a corresponding 7% increase in pensions for retired government servants. Employee organisations, however, contend that the proposed adjustment does not adequately reflect prevailing inflationary conditions and have called for a more substantial revision to the compensation package.