ISLAMABAD: The Supreme Court of Pakistan has approved a 100 percent increase in the utility allowance for government employees, in a significant relief measure for public sector workers, officials confirmed.
According to details, the revised allowance will take effect from July 1, 2026. The decision was approved by the Chief Justice of Pakistan and applies across multiple pay scales, with substantial increases announced for employees from Grade 1 to Grade 21 and above.
Under the revised structure, employees in Grades 1 to 6 will see their utility allowance increased from Rs6,000 to Rs12,000. For Grades 7 to 10, the allowance has been raised from Rs8,000 to Rs16,000, while employees in Grades 11 to 15 will receive Rs20,000, up from Rs10,000.
Officials said the revised rates also include higher-level adjustments, with Grade 16 officers now entitled to Rs24,000, up from Rs12,000. Grade 17 officers will receive Rs30,000 instead of Rs15,000, while Grade 18 officers’ allowance has been increased from Rs18,000 to Rs36,000.
Similarly, Grade 19 officers will now receive Rs42,000, up from Rs21,000, while Grade 20 officers’ allowance has been revised to Rs48,000 from Rs24,000. The highest bracket, Grade 21 and above, will now receive Rs60,000, compared to the previous Rs30,000.
The utility allowance is intended to cover electricity and gas expenses for government employees. Officials stated that the additional financial burden will be met through the approved federal budget for the fiscal year 2026–27.
KP govt employees get 7% Salary increase, disparity allowance hike denied
Meanwhile, the Khyber Pakhtunkhwa government has decided to increase the salaries and pensions of government employees of the province by seven percent in the budget for the financial year 2026-27.
According to the Finance Department, this increase has been made after adjusting the allowances of 2022 and 2025 to the Basic Pay Scale (BPS). Official sources say that a request for a further 15 percent increase in the disparity allowance was submitted by the employees’ organizations, which was rejected by the Finance Department.
According to Finance Department officials, a summary of a seven percent increase in salaries and pensions in the province was prepared on the lines of the federal government, which has been approved by the cabinet.
According to the budget documents, the ad hoc allowances given in 2022 and 2025 will now be merged into the basic salary, and the seven percent increase will be implemented. This move will bring a clear difference in the basic salary of government employees, while the pension of pensioners will also be increased by seven percent.
The Finance Department has clarified that there is no scope for further increase in the disparity allowance as the province’s financial resources are limited. Government employees have been demanding an increase in disparity allowance for a long time to reduce the salary gap in different departments, but this demand was not included in the budget.
The provincial government says that after the 7 percent increase, government employees will get overall relief, and inflationary pressures will reduce to some extent. After the budget is approved, the new salaries and pensions will be implemented from July 1, 2026.
