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Balochistan announces 7% ad hoc salary increase for government employees

The Balochistan government approved a 7% ad hoc relief allowance for employees from BPS-1 to BPS-22, effective July 1, 2026, to ease inflation.

2 months ago
in Business
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QUETTA (Web Desk) – The Balochistan government has approved a 7% ad hoc relief allowance for government employees, providing salary relief to thousands of public servants across the province as part of its efforts to reduce the financial burden caused by rising living costs and inflation.

The provincial Finance Department issued an official notification confirming that the allowance will be effective from July 1, 2026, and will apply to all regular government employees serving in Basic Pay Scale (BPS) 1 to 22.

According to the notification, the additional allowance will be calculated on the basis of each employee’s running basic pay. Officials said the measure is intended to provide financial support to provincial employees while maintaining consistency with the government’s broader salary adjustment policy for the new fiscal year.

The Finance Department clarified that the 7% ad hoc relief allowance will be subject to applicable income tax deductions in accordance with existing tax laws. It also stated that the allowance will remain a separate component of employees’ salaries and will not be included in calculations for pension, gratuity or other retirement benefits.

Government officials explained that employees on extraordinary leave will not be eligible to receive the allowance during the period of their leave, in line with existing service rules governing salary and allowances.

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The latest decision is expected to benefit thousands of civil servants working in various provincial departments, including education, health, police, administration, agriculture, local government and public works. Employees have welcomed the announcement, saying it will provide some relief at a time when inflation continues to affect household budgets.

Representatives of government employees’ organisations described the increase as a positive step but said further measures may be needed to offset the rising cost of food, fuel, transport and utility bills. They urged the provincial government to continue reviewing salary structures in line with inflation and economic conditions.

Economic analysts say salary adjustments have become increasingly important as inflation has reduced the purchasing power of fixed-income households. While a 7% increase may provide temporary relief, experts believe broader economic stability and inflation control remain essential for improving living standards.

Officials noted that the provincial government remains committed to balancing employee welfare with fiscal responsibility. The Finance Department said the additional expenditure resulting from the allowance has been incorporated into the provincial budget for the current financial year.

The allowance forms part of the government’s wider strategy to support public-sector employees while ensuring the uninterrupted delivery of essential services across Balochistan. Provincial authorities believe that improved financial incentives can also contribute to higher employee morale and better administrative performance.

The notification further instructed all government departments, autonomous bodies and provincial offices to implement the revised salary structure according to the prescribed rules. Treasury offices have also been directed to ensure timely payment of the allowance beginning with salaries payable after its effective date.

Employees eligible for the relief allowance are expected to receive the increase automatically through the provincial payroll system without the need for separate applications or approvals.

The announcement comes as several provincial and federal governments continue reviewing employee compensation packages in response to economic pressures. Similar salary adjustments have recently been introduced in different sectors to help public servants manage rising living expenses.

Officials said the Finance Department will continue monitoring the province’s financial position and economic indicators before considering any future revisions to employee salaries or allowances. For now, the newly approved 7% ad hoc relief allowance is expected to provide immediate financial support to government employees while reinforcing the provincial government’s commitment to improving the welfare of its workforce.

Tags: Ad Hoc ReliefBalochistanBPSFinance DepartmentGovernment EmployeesPakistanpublic sectorSalary Increase
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