The federal government has confirmed a 10% increase in salaries for government employees in the upcoming Budget 2025-26, following an agreement with the International Monetary Fund (IMF). This move brings a sigh of relief for thousands of public sector workers who are struggling with rising living costs.
As inflation continues to bite, employees had demanded stronger financial support. While many hoped for a higher raise, this 10% increment in basic pay is a step toward easing financial pressure. The government is also considering income tax relief, especially for salaried individuals and professionals such as teachers. Reports suggest that educators may receive up to 25% tax exemption, making their monthly earnings go a bit further.
The IMF’s approval came after careful negotiations, with a focus on balancing fiscal discipline and social support. Though the IMF emphasized reducing government expenses, it allowed space for this modest salary raise to help employees cope with ongoing economic challenges.
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However, many workers feel that the 10% salary hike is not enough, considering high rent, fuel, food, and medical costs. They’re urging the government to also raise allowances like House Rent, Medical, and Conveyance, which haven’t been updated in years.
The final budget announcement is set for June 10, 2025, and public sector employees are keeping a close eye, hoping for more relief measures.
This increase might not solve all problems, but it signals that employee welfare is still part of the conversation. Let’s hope more practical steps follow.