Conveyance allowance for govt employees increased by 50%, 7pc increase in salaries notified

The federal government has issued notifications implementing a 7% increase in the salaries of government employees and a 50% increase in conveyance allowance for employees and officers from Grade 1 to Grade 22, effective July 1, 2026.

According to separate notifications issued by the Ministry of Finance, the salary increase applies to the current basic pay of all federal government employees in Grades 1 to 22, in line with the announcement made in the federal budget for the fiscal year 2026-27.

The ministry also notified that the Ad hoc Relief Allowance 2022 and Ad hoc Relief Allowance 2025 have been merged into the revised basic pay.

Government employees had received a 15% Ad hoc Relief Allowance in 2022 and a 10% Ad hoc Relief Allowance in 2025. Both allowances have now been incorporated into the basic salary structure.

In a separate notification, the Ministry of Finance announced a 50% increase in the conveyance allowance for federal government employees and officers from Grades 1 to 22. The revised conveyance allowance will also take effect from July 1, 2026.

The notifications formalise the relief measures announced by the federal government in the 2026-27 budget and are expected to benefit thousands of federal employees across the country.