Govt weighs pay, pension hike in upcoming budget

The federal government is considering a pay and pension increase for public sector employees in the upcoming fiscal year 2026-27 budget, 24NewsHD TV reported on Sunday. 

According to media reports, government employees' salaries could be raised by around 7%, while pensions may increase by approximately 5%.

However, the Ministry of Finance has yet to make a final announcement, and discussions on the measures are ongoing.

Sources familiar with the matter said the government is also exploring additional relief measures for salaried individuals, aiming to offset the burden of higher living costs.

Economic analysts said that if approved, the proposed increases would benefit thousands of public sector workers and pensioners across the country.

They cautioned, however, that the final decision will depend on the government’s fiscal space and broader budget strategy.

The country has been grappling with persistent inflationary pressures, prompting policymakers to balance relief measures with efforts to maintain fiscal discipline.