Revised Basic Pay Scales 2026 and Allowances for Federal Employees:

The Federal Government has approved revised Basic Pay Scales and allowances from 1 July 2026 for civil employees paid from civil and defence estimates. The BPS-2026 structure replaces BPS-2022 and merges the 2022 and 2025 ad-hoc relief allowances into the revised pay framework.

What BPS-2026 Changes for Federal Employees:

The revised Basic Pay Scales 2026 apply from 1 July 2026 and replace BPS-2022. Existing employees serving on 30 June 2026 will have pay fixed point to point at the corresponding stage above the BPS-2022 minimum. Personal pay drawn beyond the maximum of the old scale will continue at revised rates.

Annual increments remain admissible on 1 December, subject to existing conditions. The earlier Ad-hoc Relief Allowance-2022 and Ad-hoc Relief Allowance-2025 cease from 1 July 2026. A new Ad-hoc Relief Allowance-2026 at 7% of running basic pay under BPS-2026 is allowed to eligible federal civil employees, qualifying defence-estimate civilians, contingent-paid staff and contract employees against civil posts.

The new allowance is taxable, generally admissible during leave and suspension, and excluded from pension, gratuity and house-rent recovery calculations. It is not admissible during posting or deputation abroad, but may resume on repatriation at the amount that would otherwise have applied.

Employees may choose within 30 days whether to remain under BPS-2022 or move to BPS-2026. If no option is submitted, the employee is deemed to have selected BPS-2026. Special pays and percentage-based allowances, including house rent allowance, are frozen at their admissibility level on 30 June 2026, except capped allowances covered by separate limits.

Revised BPS-2026 Salary Table:

BPS	Minimum (Rs.)	Annual Increment (Rs.)	Maximum (Rs.)
1	16,280	520	31,880
2	16,600	590	34,300
3	17,130	700	38,130
4	17,650	800	41,650
5	18,300	910	45,600
6	18,930	1,010	49,230
7	19,590	1,100	52,590
8	20,290	1,210	56,590
9	20,990	1,310	60,290
10	21,680	1,430	64,580
11	22,410	1,580	69,810
12	23,750	1,720	75,350
13	25,420	1,880	81,820
14	27,060	2,090	89,760
15	28,730	2,380	100,130
16	33,720	2,720	115,320
17	54,140	4,110	136,340
18	68,330	5,120	170,730
19	105,510	5,450	214,510
20	123,090	8,040	235,650
21	136,680	8,920	261,560
22	146,770	10,470	293,350

Key Implementation Checklist:

• Confirm the employee’s BPS and basic pay position on 30 June 2026.
• Submit the irrevocable BPS option within 30 days of the memorandum date if retaining BPS-2022 is intended.
• Check that the 7% Ad-hoc Relief Allowance is calculated on running BPS-2026 basic pay and processed from 1 July 2026.
• Use the Finance Division anomaly process for issues arising during implementation.

A Practical Reading of the Notification:

This is a structural pay revision, not simply a standalone allowance announcement. The government has introduced new minimums, increments and maximums, while also ending two earlier ad-hoc relief allowances. Employees should compare their current stage, applicable allowances and tax position rather than looking only at the new minimum or maximum figures.

The option clause is the part employees should not ignore. It creates a 30-day window for a written, irrevocable choice. Anyone who does nothing is treated as having opted for BPS-2026. Departments must collect and communicate these choices to the relevant Accounts Office or DDO, so employees should retain proof of submission.

The new 7% relief allowance improves the running-pay calculation for eligible employees, but the notification limits its treatment for pension, gratuity and house-rent recovery. Final salary outcomes may also vary because special pays and percentage-based allowances are frozen at their 30 June 2026 admissibility level. Employees should therefore confirm calculations with their payroll office before estimating take-home pay or arrears.The Notification Describes;

No. F.1(2)IMP/2026

Government of Pakistan
Ministry of Finance

Islamabad, the 21st July, 2026

OFFICE MEMORANDUM

SUBJECT:             Revision of Basic Pay Scales and Allowances of Civil Servants of the Federal Government 2026

The Federal Government has approved revision of Basic Pay Scales and allowances with effect from 1 July 2026 for the civil employees of the Federal Government paid out of civil estimates and defence estimates, as detailed below.

Part-I (Pay)

2. Revision of Basic Pay Scales: The Basic Pay Scales (BPS)-2026 have been introduced by merging Ad-hoc Relief Allowance-2022 and Ad-hoc Relief Allowance-2025. BPS-2026 shall replace BPS-2022 with effect from 1 July 2026 as given at the end of this Office Memorandum.

3. Fixation of Pay of Existing Employees: (i) The basic pay of an employee in service on 30 June 2026 shall be fixed in BPS-2026 on a point-to-point basis, at the stage corresponding to that occupied above the minimum of BPS-2022. (ii) Where Personal Pay is being drawn as part of basic pay beyond the maximum of the pay scale on 30 June 2026, it shall continue in BPS-2026 at the revised rates.

4. Annual Increment: Annual increment shall continue to be admissible, subject to existing conditions, on 1 December each year.

Part-II (Allowances)

5. Ad-hoc Allowances: Upon introduction of BPS-2026, Ad-hoc Relief Allowance-2022, granted at 15% of running basic pay of BPS-2017, and Ad-hoc Relief Allowance-2025, granted at 10% of running basic pay on BPS-2022, shall cease to exist from 1 July 2026.

6. Ad-hoc Relief Allowance-2026:

(a) An allowance at 7% of running basic pay of BPS-2026 shall be allowed to federal civil employees, civilians paid out of defence estimates, contingent-paid staff and contract employees against civil posts on standard contract terms from 1 July 2026 until further orders.

(b) It is subject to income tax.

(c) It is admissible during leave and the entire period of LPR except extraordinary leave.

(d) It is not part of emoluments for pension, gratuity or house-rent recovery.

(e) It is not admissible during posting or deputation abroad.

(f) On repatriation, it is admissible at the rate and amount that would have applied had the employee not been posted abroad.

(g) It is admissible during suspension.

(h) “Basic Pay” includes Personal Pay granted due to annual increments beyond the maximum of existing pay scales.

7. Special Pay and Allowances:

Special Pays, Special Allowances and percentage-based allowances, excluding allowances capped by a maximum limit, including House Rent Allowance and allowances equal to one month’s basic pay, shall be frozen at the level admissible on 30 June 2026.

8. Option:

(1)                         The Ministry/Division/Department/Office to which an employee belongs and/or on whose pay roll he/she is borne shall obtain an irrevocable option in writing from such employees within 30 days commencing from the date of issue of this Office Memorandum and communicate it to the concerned Accounts Office/DDO, as the case may be, either to continue to draw salary in the Scheme of Basic Pay Scales-2022 or in the Scheme of Basic Pay Scales-2026 as specified in this Office Memorandum.

(2)                         An existing employee, as aforesaid, who does not exercise and communicate his/her option within the specified time limit, shall be deemed to have opted for the Scheme of Basic Pay Scales-2026.

9.                          All the existing rules/orders on the subject shall be considered to have been modified to the extent indicated above. All the existing rules/orders, not so modified, shall continue to be in force under this scheme.

10.    Anomalies:

                              An Anomaly Committee shall be set up in the Finance Division (Regulations Wing) to resolve the anomalies, if any, arising out in the implementation of the Basic Pay Scales-2026.

11. Existing Pay Scales-2022 and Revised Pay Scales-

Existing Pay Scales-2022 and Revised Pay Scales- BASIC PAY SCALES OF THE CIVIL SERVANTS
Basic Pay Scales-2022					Stages	Basic Pay Scales-2026
BPS	MIN		INCR	MAX		MIN	INCR	MAX
1		13,550	430	26,450	30	16,280	520	31,880
2		13,820	490	28,520	30	16,600	590	34,300
3		14,260	580	31,660	30	17,130	700	38,130
4		14,690	660	34,490	30	17,650	800	41,650
5		15,230	750	37,730	30	18,300	910	45,600
6		15,760	840	40,960	30	18,930	1,010	49,230
7		16,310	910	43,610	30	19,590	1,100	52,590
8		16,890	1,000	46,890	30	20,290	1,210	56,590
9		17,470	1,090	50,170	30	20,990	1,310	60,290
10		18,050	1,190	53,750	30	21,680	1,430	64,580
11		18,650	1,310	57,950	30	22,410	1,580	69,810
12		19,770	1,430	62,670	30	23,750	1,720	75,350
13		21,160	1,560	67,960	30	25,420	1,880	81,820
14		22,530	1,740	74,730	30	27,060	2,090	89,760
15		23,920	1,980	83,320	30	28,730	2,380	100,130
16		28,070	2,260	95,870	30	33,720	2,720	115,320
17		45,070	3,420	113,470	20	54,140	4,110	136,340
18		56,880	4,260	142,080	20	68,330	5,120	170,730
19		87,840	4,530	178,440	20	105,510	5,450	214,510
20		102,470	6,690	196,130	14	123,090	8,040	235,650
21		113,790	7,420	217,670	14	136,680	8,920	261,560
22		122,190	8,710	244,130	14	146,770	10,470	293,350

SO (Regulation-V)

A New Pay Framework for Federal Employees:

The introduction of BPS-2026 marks a major change in the salary structure of federal government employees. By replacing BPS-2022, merging earlier relief allowances, revising pay stages, and introducing a 7% Ad-hoc Relief Allowance, the notification provides a new framework effective from 1 July 2026. Employees should carefully verify their revised pay fixation, submit the required option within 30 days, and confirm tax, allowance, and deduction details with their Accounts Office or DDO. Since several special allowances remain frozen at their 30 June 2026 level, the actual increase in take-home salary may differ from employee to employee.

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Frequently Asked Questions

What is the main change under BPS-2026?

BPS-2026 replaces BPS-2022 from 1 July 2026, revises minimum, increment and maximum pay points, and introduces a 7% ad-hoc relief allowance on running BPS-2026 basic pay.

What happens if an employee does not submit an option?

The employee is deemed to have opted for BPS-2026. The written option must be submitted within 30 days from the date of issue of the Office Memorandum.

Are the revised scales automatically the same as take-home salary?

No. Tax, frozen special allowances, pension treatment and other applicable deductions can affect take-home pay. Employees should confirm the final calculation with their Accounts Office or DDO.