Punjab Government Notifies Revised Pay Scales and Pension Increase for Employees
The Punjab government has issued an official notification introducing the Basic Pay Scales (BPS) 2026 for provincial government employees and announcing a 3.5% increase in pensions for eligible civil pensioners.
According to notifications issued by the Punjab Finance Department, both measures will take effect from 1 July 2026.
Under the revised policy, all serving government employees currently receiving salaries under the Basic Pay Scales 2022 will be transitioned to the Basic Pay Scales 2026. Their salaries will be re-fixed in accordance with the newly approved pay structure.
The Finance Department has also confirmed that the existing annual increment system will remain unchanged. Eligible employees will continue to receive their annual increment on 1 December, as provided under the current rules.
In a separate notification, the provincial government approved a 3.5% increase in net pension for civil pensioners who retired before 1 July 2026. The increase will apply to the net pension, excluding the medical allowance.
Officials also clarified that employees retiring on or after 1 July 2026 will not be covered under this particular pension increase.
The pension revision will also apply to family pensions and other eligible pension categories in accordance with the applicable government rules.
The Punjab Finance Department has directed all provincial departments and government institutions to implement the revised pay scales and pension adjustments with effect from 1 July 2026.
