Dawn
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16:33 Jul 04, 2025
The finance ministry on Friday issued notifications for a 10 per cent increase in the salaries of federal government employees, as well as granting Disparity Reduction Allowance (DRA) worth 30pc of basic pay, according to documents seen by Dawn.com. The pay hike was announced as part of the budget for the coming fiscal year, where the salaries of federal employees from Grade 1 to 22 would be raised by 10pc and retired government servants would be eligible for a 7pc pension increase. According to one of the notifications, dated July 4, basic pay to armed forces personnel, civil armed forces, and civil employees of the federal government are subject to the pay raise. The notification read that the pay would be “subject to income tax; admissible during leave and entire period of LPR except during extraordinary leave; will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent.” It further said that the pay would “not be admissible to the employees durin...