Govt Issues Notifications for 7% Salary Raise, 50% Increase in Conveyance Allowance for Federal Employees
- 7% salary increase notified for federal employees from Grades 1 to 22.
- Conveyance allowance raised by 50% with effect from July 1, 2026.
- Ad hoc Relief Allowances for 2022 and 2025 merged into revised basic pay.
- Measures implemented under the federal budget for FY2026-27.
The federal government has officially issued notifications implementing a 7% increase in the salaries of federal government employees and a 50% enhancement in conveyance allowance for officers and staff from Grades 1 to 22, with both measures taking effect from July 1, 2026.
The notifications, issued by the Ministry of Finance, formalise the relief package announced in the Federal Budget 2026-27. Under the revised pay structure, all federal employees in Grades 1 to 22 will receive a 7% increase based on their existing basic pay.
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The Finance Ministry has also confirmed that the Ad hoc Relief Allowance 2022 and Ad hoc Relief Allowance 2025 have been merged into the revised basic salary. Employees had previously been granted a 15% Ad hoc Relief Allowance in 2022 and a further 10% allowance in 2025. Both have now been permanently incorporated into the basic pay structure.
In a separate notification, the ministry approved a 50% increase in the conveyance allowance for all federal government employees and officers from Grades 1 to 22. The revised allowance will also be effective from July 1, 2026.
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