Punjab Government is expected to introduce a revised salary structure from July 1, 2026, including the merger of adhoc relief allowances into basic pay and additional financial relief for employees and pensioners.
Punjab government has approved a significant relief package for government employees and pensioners in its Budget 2026-27, paving the way for a new salary structure aimed at easing the burden of inflation and improving pay scales across the province.
According to budget documents, Punjab will adopt the same salary reforms proposed by the federal government in the Finance Bill. The revised pay structure is scheduled to take effect from July 1, 2026, bringing major changes to employee compensation.
Under the new framework, previous adhoc relief allowances will be merged into the basic salary. The 15 percent adhoc relief allowance granted in 2022 and the 10 percent allowance awarded in 2025 will be incorporated into basic pay, resulting in a revised basic pay scale structure.
In addition, government employees will receive a further 7 percent adhoc relief allowance on their running basic pay. Officials believe the move will increase take-home salaries and modernize the existing compensation system.
The federal government has also proposed a 15 percent Disparity Reduction Allowance (DRA) for employees from Grade 1 to Grade 22 to reduce pay differences among various departments and create greater financial balance. Punjab authorities are expected to make a separate decision regarding the implementation of this allowance.
The government says the reforms will establish a more uniform and organized salary framework while providing employees with better financial support against rising living costs.
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