PESHAWAR: 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.
Read also: KP Govt to Present Budget 2026–27 on June 19
