As per the Budget Speech 2025-26, the Federal Government of Pakistan has announced a salary increase for BPS-01 to BPS-22 employees, effective from 1st July 2025. The government has introduced two major allowances for federal employees:
Adhoc Relief Allowance (ARA) 2025 at 10% of the basic pay for all BPS-01 to BPS-22 employees.
Disparity Reduction Allowance (DRA) 2025 at 30% of basic pay for eligible government employees.
This Salary Increase Chart 2025 includes a total increase of 40% in monthly pay for eligible employees. It’s important to note that the DRA-2025 is in addition to previously granted allowances—DRA-2021 (25%) and DRA-2022 (15%)—resulting in a cumulative 70% Disparity Reduction Allowance for those eligible.
However, employees who are already receiving special allowances equal to or greater than 100% of their basic pay are not eligible for the new DRA-2025. Regardless of DRA eligibility, all federal employees from BPS-01 to BPS-22 will receive the 10% Adhoc Relief Allowance 2025.
This update in the Salary Increase Chart 2025 will be implemented from July 1, 2025, and aims to provide financial relief and reduce income disparities among government employees.
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