Government Notifies Revised BPS Salaries And Allowances

ISLAMABAD: The federal government has officially issued notifications for revised Basic Pay Scales (BPS) and updated allowances for employees from BPS-1 to BPS-22, implementing the salary package announced in the federal budget with effect from July 1, 2026.

According to the notification, the 15% Adhoc Relief Allowance introduced in 2022 and the 10% Adhoc Relief Allowance announced in 2025 have been merged into the basic pay of all federal government employees, resulting in a revised pay structure across every grade.

After incorporating these allowances into the basic salary, the government has also approved a 7% salary increase, which will be calculated on the newly revised basic pay.

The Ministry of Finance has formally issued the required notifications to enforce the revised pay scales and allowances with retrospective effect from July 1, 2026.

The notification further states that the Conveyance Allowance for employees from BPS-1 to BPS-22 has been increased by 50% of the existing monthly amount, while the existing terms and conditions will remain unchanged.

Additionally, the government has approved an Executive Allowance for officers serving in grades BPS-17 to BPS-22.

The revised salary package is intended to provide financial relief to federal government employees as they continue to face rising inflation and increasing living expenses.