Punjab Budget 2025: Salaries Up 10% and Pensions increased by 5%

Punjab government on Monday announced considerable salary increase for its employees, with 10% hike in pay and a rise in pensions by 5% as part of the provincial budget for the fiscal year 2025-26.

Alongside this, the minimum wage across the region has been raised to Rs40,000, marking a major boost for government workers. Finance Minister Mujtaba Shujaur Rehman unveiled the Rs5.3 trillion budget, emphasizing that the salary revisions aim to improve the welfare of public servants and align with the development goals set by Chief Minister Maryam Nawaz.

Punjab Budget 2025-26

“This budget reflects our commitment to support the hardworking employees of Punjab,” said the finance minister, adding that even with limited funds, operational costs have only gone up by 3%, including the rise in salaries and pensions.

Senior Minister Mariam Aurangzeb also shared on social media that the Annual Development Programme (ADP) has grown by 47%, showing that while development spending is increasing, the government is keeping regular expenses under control.

The increase in salaries and the adjustment in minimum wage are expected to bring relief and lift the spirits of government workers in Punjab.

Earlier, the federal government approved a 10% salary increase for employees in grades 1 to 22 and a 7% pension raise for retirees for the fiscal year 2025–26.

In comparison, the Sindh government announced a 12% salary raise for grades 1 to 16, 10% for grades 17 to 22, and an 8% pension increase for retired provincial employees — slightly higher than the federal pension hike.