Basic Pay Scales 2026 and Allowances for Federal Civil Servants

Finance Division’s 21 July 2026 memorandum introduces BPS-2026 from 1 July, sets revised basic pay scales for BPS-1 to BPS-22, and grants a 7% Ad-hoc Relief Allowance-2026 to eligible federal employees.

Overview

The Finance Division’s 21 July 2026 memorandum introduces BPS-2026 from 1 July 2026, replacing BPS-2022 and merging the 2022 and 2025 ad-hoc relief allowances into the revised scales. It fixes existing employees’ pay on a point-to-point basis, provides a 7% Ad-hoc Relief Allowance-2026 for eligible employees, freezes specified special and percentage-based allowances at their 30 June 2026 level, and gives employees 30 days to submit an irrevocable written option between BPS-2022 and BPS-2026. Employees who do not submit an option are treated as having selected BPS-2026.

Detailed Explanation

Revision of Basic Pay Scales 2026 for Federal Civil Servants

The Finance Division issued Office Memorandum No. F.1(2)IMP/2026 on 21 July 2026, approving revised Basic Pay Scales and allowances for civil employees of the Federal Government paid from civil and defence estimates. The revised scales take effect from 1 July 2026 and replace BPS-2022 with BPS-2026.

What Has Changed Under BPS-2026?

The new Basic Pay Scales-2026 have been introduced by merging Ad-hoc Relief Allowance-2022 and Ad-hoc Relief Allowance-2025 into the revised pay structure. The previous BPS-2022 structure is replaced from 1 July 2026.

Revised Pay Scales 2026 Salary Chart for BPS-1 to BPS-22

The following table shows the minimum basic pay, annual increment and maximum basic pay for each revised scale. Amounts are in Pakistani rupees.

BPSMinimum (Rs.)Annual Increment (Rs.)Maximum (Rs.)
116,28052031,880
216,60059034,300
317,13070038,130
417,65080041,650
518,30091045,600
618,9301,01049,230
719,5901,10052,590
820,2901,21056,590
920,9901,31060,290
1021,6801,43064,580
1122,4101,58069,810
1223,7501,72075,350
1325,4201,88081,820
1427,0602,09089,760
1528,7302,380100,130
1633,7202,720115,320
1754,1404,110136,340
1868,3305,120170,730
19105,5105,450214,510
20123,0908,040235,650
21136,6808,920261,560
22146,77010,470293,350

Fixation of Pay for Existing Employees

An employee who was in service on 30 June 2026 will have basic pay fixed in BPS-2026 on a point-to-point basis. The employee will move to the corresponding stage above the minimum of the former BPS-2022 scale. Personal Pay that formed part of basic pay and was being drawn above the maximum of the old scale will continue at the revised rates.

Annual Increment

Annual increments will continue to be admissible on 1 December each year, subject to the existing conditions.

Ad-hoc Relief Allowance-2026 at 7%

With the introduction of BPS-2026, Ad-hoc Relief Allowance-2022 and Ad-hoc Relief Allowance-2025 cease to exist from 1 July 2026. The memorandum instead allows a new Ad-hoc Relief Allowance-2026 at 7% of running basic pay under BPS-2026 to eligible Federal Government civil employees, civilians paid from defence estimates, contingent-paid staff and contract employees appointed against civil posts on standard contract terms.

Conditions of Ad-hoc Relief Allowance-2026

  • The allowance is subject to income tax.
  • It is admissible during leave and the entire period of leave preparatory to retirement (LPR), except extraordinary leave.
  • It is admissible during suspension.
  • It is not included in emoluments for pension, gratuity or house-rent recovery.
  • It is not admissible during posting or deputation abroad. On repatriation, it is restored at the rate and amount that would have applied if the employee had not been posted abroad.
  • For this purpose, basic pay includes Personal Pay granted because annual increments took an employee beyond the maximum of the existing pay scale.

Special Pay and Other Allowances

Special pays, special allowances and allowances calculated as a percentage of pay are to remain frozen at the level admissible on 30 June 2026. The memorandum excludes allowances that are capped by a maximum limit from this freeze. It specifically includes House Rent Allowance and allowances equal to one month’s basic pay among the allowances covered by the stated freeze.

Option Between BPS-2022 and BPS-2026

Existing employees must submit an irrevocable written option within 30 days from the date of the memorandum, stating whether they wish to continue under BPS-2022 or move to BPS-2026. The department or office must communicate the option to the relevant Accounts Office or Drawing and Disbursing Officer (DDO). An employee who does not submit and communicate an option within the prescribed period will be treated as having opted for BPS-2026.

Anomaly Committee

The Finance Division (Regulations Wing) will establish an Anomaly Committee to address issues arising during implementation of BPS-2026. Existing rules and orders remain applicable except where they have been modified by this memorandum.

Effective Date and Notification Details

The revised Basic Pay Scales and allowance arrangements take effect from 1 July 2026. The Finance Division issued the Office Memorandum on 21 July 2026, under reference No. F.1(2)IMP/2026.

Frequently Asked Questions

When did BPS-2026 become effective?

The revised pay scales took effect from 1 July 2026.

What is the new Ad-hoc Relief Allowance-2026 rate?

The memorandum allows 7% of running basic pay under BPS-2026 for the employee groups specified in the memorandum.

Will annual increments continue?

Yes. Annual increments remain admissible on 1 December, subject to existing conditions.

Can an existing employee remain under BPS-2022?

Yes. The employee must submit an irrevocable written option within 30 days from the memorandum date. Without an option, the employee is deemed to have selected BPS-2026.

Do Ad-hoc Relief Allowance-2022 and 2025 continue after 1 July 2026?

No. Both allowances cease from 1 July 2026 under the revised pay arrangement.

For the separate Finance Division clarification on the treatment of Ad-hoc Relief Allowance-2023 and 2024 after the pay-scale revision, see our guide to the 2026 pay-scale clarification.