ISLAMABAD: The federal government has formally approved revised Basic Pay Scales (BPS) and allowances for federal government employees, along with a 7 percent increase in basic pay, effective from July 1, 2026, according to an official notification.


Under the revised pay structure, the government has merged the 15 percent adhoc relief allowance granted in 2022 and the 10 percent adhoc relief allowance announced in 2025 into employees’ basic pay. After the merger, a further 7 percent increase has been allowed on the revised basic pay.


The government has also approved higher conveyance allowances for employees from Grade 1 to Grade 22, while Executive Allowance has been approved for officers in Grades 17 to 22.


According to the revised Basic Pay Scales, the minimum basic pay for a Grade-1 employee has increased to Rs16,280, with the maximum fixed at Rs31,880.


For Grade-16 employees, the revised basic pay ranges from Rs33,720 to Rs115,320.


For officers in Grade-22, the minimum basic pay has been revised to Rs146,770, while the maximum has been fixed at Rs293,350.


The notification also revises conveyance allowance rates across all grades. Employees in Grades 1 to 4 will now receive Rs2,678, up from Rs1,785. For Grades 5 to 10, the allowance has increased from Rs1,932 to Rs2,898.


Employees in Grades 11 to 15 will receive Rs4,284, compared with the previous Rs2,856, while employees in Grade 16 and above will now receive a monthly conveyance allowance of Rs7,500, up from Rs5,000.


The revised pay scales and allowances implement the federal government’s budget announcement for FY2026-27 and are applicable with retrospective effect from July 1, 2026.