Summary KP budget decided to raise salaries and pensions by 7%, rejects 15% disparity allowance hike, with monthly salary bill expected to exceed Rs82 billion after adjustments.
PESHAWAR (Dunya News) – The Khyber Pakhtunkhwa government has decided to increase salaries and pensions of government employees by 7 percent each in the upcoming provincial budget, officials said on Thursday.
According to the provincial Finance Department, the increase has been made after adjusting the allowances announced in 2022 and 2025 into the Basic Pay Scale structure.
The Finance Department further stated that a request for an additional 15 percent increase in the disparity allowance has been rejected. It added that a 15 percent disparity allowance had already been announced for government employees last year.
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Officials said that no province in the country is currently providing a disparity allowance to government employees, which was also a key consideration in the decision.
The provincial Finance Department noted that after the latest increase in salaries, the monthly salary bill of Khyber Pakhtunkhwa is expected to exceed 82 billion rupees, reflecting a significant rise in recurrent expenditure.
Authorities said the revised measures aim to balance employee welfare with fiscal constraints while maintaining overall budgetary discipline in the province.
