PM Approves Financial Assistance of Up to Rs. 20 Million for Families of Employees Who Die in Service
Prime Minister Shehbaz Sharif has approved a revised financial assistance package for the families of federal government employees who die while serving in government service.
The updated package increases financial compensation and expands support for housing, education, healthcare and other welfare needs of affected families.
The Establishment Division issued the revised policy on September 8, 2026, with the new provisions applicable from August 28, 2026.
Financial Assistance for Ordinary In-Service Deaths
Under the revised package, families of employees who die during service will receive a lump-sum payment based on the employee’s basic pay scale:
| Pay Scale | Financial Assistance |
|---|---|
| BS-1 to BS-4 | Rs. 600,000 |
| BS-5 to BS-10 | Rs. 900,000 |
| BS-11 to BS-15 | Rs. 1.2 million |
| BS-16 to BS-17 | Rs. 1.5 million |
| BS-18 to BS-19 | Rs. 2.4 million |
| BS-20 and above | Rs. 3 million |
Up to Rs. 20 Million for Security-Related Deaths
Families of employees who lose their lives in security-related incidents will receive substantially higher compensation.
The provision covers deaths linked to incidents such as encounters, bomb blasts, terrorism, riots and watch-and-ward duties.
Employees in BS-1 to BS-10 categories will be eligible for Rs. 10 million, while the compensation can reach Rs. 20 million for BS-20 and above.
Compensation for Accidents and Disabilities
The revised package also includes financial assistance for employees who suffer death or disabilities while performing official duties.
Depending on the circumstances and applicable category, compensation for death may range from Rs. 3 million to Rs. 7 million.
Other specified benefits include:
- Permanent disability: Rs. 3 million
- Temporary disability: Rs. 1 million
- Serious injuries: Rs. 200,000
- Minor injuries: Rs. 100,000
Salary and Pension Benefits
Families of employees declared martyrs will continue to receive the deceased employee’s full pay and allowances, including applicable increments and future relief, until the employee reaches the prescribed retirement age.
Afterward, the family will receive a pension according to the applicable rules.
In cases of ordinary in-service death, eligible families will receive a 100 percent pension calculated according to service and last pay, subject to the applicable minimum service requirement.
Housing Support for Families
The revised policy also provides housing-related assistance.
Families already living in government or hired accommodation may retain the residence until the deceased employee reaches retirement age or for a minimum period of five years, whichever is later.
Families that do not have government or rented accommodation will be eligible for house rent allowance according to the employee’s grade.
For ordinary in-service deaths, families will also receive an amount ranging from Rs. 2 million to Rs. 7 million in lieu of a residential plot, depending on the employee’s grade.
For martyr families, the housing support can range from Rs. 13.5 million to Rs. 50 million for house purchases. Eligible families may also receive monthly house and transport allowances.
Education and Healthcare Facilities
Children of deceased government employees will be eligible for free education up to graduation level at public institutions.
Children of employees declared martyrs will receive government-funded education up to the postgraduate level.
The package also includes free healthcare facilities for eligible family members.
Other Financial Benefits
The revised assistance package provides several additional benefits, including:
- Marriage grant: Rs. 800,000
- Provident fund benefits
- Benevolent fund benefits
- Group insurance benefits
- Waiver of eligible unpaid housing and vehicle advances
- Vehicle or cash equivalent for eligible BS-16 and above cases
In certain security-related death cases, a widow, widower, son or daughter may also be appointed to a BS-1 to BS-15 position without advertisement, subject to the applicable rules.
Departments Directed to Process Benefits Quickly
The government has directed every ministry and department to nominate a BS-17 or BS-18 officer to oversee the provision of benefits to eligible families.
The designated officer will be responsible for ensuring that the approved benefits are delivered within one month.
The revised policy will replace the previous financial assistance and Shuhada packages applicable to federal government employees.
