Special Allowance Notification 2026 | Govt Employees Salary Increase Update

Special Allowance Notification for Govt Employees 2026 | Salary Increase Update The Government of Pakistan, Ministry of Finance, has issued an important Office Memorandum regarding the Revision of Special Allowance Granted to Civil Employees of the Federal Government. According to the notification, with effect from 1 July 2026, the minimum wage/gross salary has been enhanced from Rs. 37,000 to Rs. 40,700 for eligible Federal Government employees and certain civilians paid from Defence Estimates. Employees whose gross salary is less than Rs. 40,700 will be allowed the difference as Special Allowance. In this video, we explain: • Special Allowance Notification 2026 • New minimum wage/gross salary of Rs. 40,700 • Who will be eligible for the Special Allowance • Effective date: 1 July 2026 • Income tax treatment of the allowance • Whether the allowance is admissible during leave and LPR • Impact on pension, gratuity and house rent recovery • Treatment during posting/deputation abroad • Budget 2026-27 implications for Govt Employees The notification states that the Special Allowance will be subject to income tax and will not be treated as emoluments for calculation of pension/gratuity or recovery of House Rent. Subscribe to Govt Employees Updates for the latest notifications, salary updates, pension news, allowances, service rules and government employee information. #SpecialAllowance #GovtEmployees #GovtEmployeesUpdates #SalaryIncrease #GovernmentEmployees #SalaryUpdate #FederalEmployees #Notification2026