The Punjab government has reportedly finalized plans to increase the salaries of provincial government employees in the upcoming budget, with the final raise expected to mirror the salary adjustment announced by the federal government in the Federal Budget 2026-27.
According to sources, the provincial government is aligning its compensation strategy with federal budgetary decisions to maintain uniformity in pay structures across public sector employees.
Budget proposals indicate that approximately Rs. 650 billion will be allocated for salaries, while Rs. 505.8 billion has been earmarked for pension payments, reflecting the substantial share of employee-related expenditures in Punjab’s overall budget.
The province’s tax revenue is projected to reach Rs. 1.33 trillion during the next fiscal year, providing the financial foundation for planned expenditures and development programs.
In addition to employee compensation, the proposed budget includes Rs. 800 billion for the Punjab Finance Commission, Rs. 25 billion for social protection initiatives, and Rs. 150 billion for the Suthra Punjab program.
Sources further revealed that Rs. 580.2 billion has been proposed for operational expenditures, while Rs. 221.9 billion is expected to be allocated for investment-related programs.
The budget framework also includes Rs. 54 billion for foreign-assisted projects and Rs. 570 billion for development and capital expenditures aimed at supporting infrastructure and public service improvements.
Punjab’s total expenditures for the upcoming fiscal year are projected to reach Rs. 3.57 trillion.
The final salary increase for government employees will become clear once the federal budget is formally announced and the Punjab government unveils its own budgetary proposals in the coming days.
