The federal government has announced a 10% salary increase for all government employees, including both armed forces and civil servants. This raise will take effect from July 1, 2025, and will also apply to contract workers.
In addition to the pay raise, the government has introduced a 30% disparity allowance for employees who were not receiving it before. This allowance is meant to reduce salary gaps between different departments and improve fairness in government pay structures.
As part of the new 2025-26 budget, the government has also updated the income tax system. People earning up to Rs600,000 per year will not have to pay any income tax. For those earning more, tax rates will increase based on their income, starting from 1% and going up to 35% for the highest earners.
These changes are designed to provide tax relief to the lower-income salaried class while ensuring that higher-income individuals contribute more.
The overall goal of these measures is to support the financial well-being of government employees and make the tax system more balanced. By increasing salaries and offering tax benefits, the government hopes to ease the burden on working families, especially during a time of rising living costs.
This move is expected to boost employee morale, improve retention in public service, and create a more fair and supportive system for all government workers across the country.
