The government has allocated Rs 242.21 billion for the remuneration of government employees in the upcoming Fiscal Year (FY) 2026/27, an increase of approximately Rs 75 billion compared to the amount allocated for the current fiscal year.
For FY 2025/26, the government had allocated Rs 167.21 billion for salaries and benefits of individuals working in various government offices. In the previous fiscal year, the allocation stood at Rs 154.43 billion, including remuneration and allowances for employees and office bearers.
Salary and Allowance Allocations Increased
According to the budget breakdown, Rs 187.87 billion has been allocated for employee salaries, while Rs 1.60 billion has been set aside for the remuneration of office bearers.
The government has allocated Rs 6.68 billion for uniform allowances, an increase of Rs 2.41 billion compared to the current fiscal year. Last year, expenditure under this heading amounted to Rs 3.97 billion.
Similarly, the budget for food allowances has been increased from Rs 16.73 billion to Rs 17.91 billion. Medical treatment expenses have more than doubled, rising from Rs 787.7 million to Rs 1.61 billion.
Higher Allocations for Local, Dearness and Foreign Allowances
The allocation for local allowances has increased from Rs 926 million to Rs 1.18 billion. The budget for dearness allowances has also risen significantly, from Rs 12.01 billion to Rs 15.61 billion.
Under travel and daily allowances, the government has increased the allocation slightly to Rs 147 million.
Foreign allowances for government employees have also been increased. The government has allocated Rs 1.237 billion for FY 2026/27, compared to Rs 955.8 million in the current fiscal year. Likewise, the allocation under other employee allowances has increased from Rs 1.77 billion to Rs 1.83 billion.
Meeting and Incentive Allowances Reduced
Despite the overall increase in employee benefits, some expenditure heads have been reduced. Meeting allowances have been cut from Rs 244.9 million in the current fiscal year to Rs 171.3 million for the upcoming year.
Similarly, the allocation under employee incentives has been slightly reduced from Rs 511.9 million to Rs 507.6 million.
Increased Social Security Spending
The government has earmarked Rs 5.28 billion for employee social security programs, which is Rs 1.41 billion more than the allocation for the current fiscal year.
Government Announces 21 Percent Salary Hike
Overall, the government has announced a 21 percent increase in salaries for government employees as part of a broader package that includes enhanced welfare benefits, healthcare support, infrastructure development, and other public sector initiatives.
