Notification Issued for 10% Salary Increase and 30% Disparity Allowance for Federal Government Employees

The Federal Government of Pakistan has officially announced a 10% increase in salaries and the grant of a 30% Disparity Reduction Allowance for its employees. This development has been confirmed through a notification released by the Ministry of Finance.
According to the notification, the 10% ad-hoc allowance will be applied to the current basic pay of all federal civil servants, including employees of the Armed Forces and Civil Armed Forces. The increment will also be applicable to contractual employees, based on their basic pay structure.
This increase in pay is scheduled to come into effect from July 1, 2025.
In addition to the ad-hoc allowance, the Finance Ministry has also approved a 30% Disparity Reduction Allowance (DRA) for government servants from Grade 1 to Grade 22. This DRA will be calculated on the basis of the basic pay scale of June 30, 2022, and its implementation will also begin from July 1, 2025.
These measures are part of the federal government’s ongoing efforts to provide financial relief to public sector employees and to address income imbalances across various departments.