The federal government has issued an official notification confirming a 10% salary increase for all federal employees from grades 1 to 22, effective July 1, 2025. This increment applies to the existing basic pay and follows the government’s announcement during the federal budget 2025-26.
In a separate notification, the Ministry of Finance also approved a 30% Disparity Reduction Allowance (DRA) for the same employees. This allowance is aimed at reducing wage inequality across different government departments and ministries. It reflects the government’s commitment to address long-standing pay disparities.
As per the notification, the DRA will be calculated based on the basic pay as of June 30, 2022. However, employees who joined service on or after July 1, 2022, will receive the allowance according to the 2017 basic pay scales instead. Both the salary raise and DRA will be implemented from July 1, 2025.
The finance minister earlier stated that this step was taken in line with the constitutional principle of equal rights. The aim is to bring uniformity in pay structures and provide relief amid increasing economic pressure and inflation.
This announcement has been welcomed by government employees and unions, who had long been demanding pay revisions. The move is expected to benefit thousands of employees and officers nationwide and ease their financial burdens in the coming months.