Budget 2025-26: PPP leader proposes 50pc salary, 100pc pension increase

ISLAMABAD: Pakistan People’s Party (PPP) leader and CEC member Chaudhry Manzoor, who heads the People’s Labour Bureau, called on President Asif Ali Zardari as they discussed the challenges faced by government employees and the increase in their salaries and pensions in the budget 2025-26.

During the meeting, Chaudhry Manzoor requested President Zardari to advocate for a 50 percent salary increase for government employees and a 100 percent hike in pensions in the upcoming 2025-26 federal budget.

The budget is scheduled to be presented on Tuesday, June 10, following the Eid ul Adha holidays, with final preparations underway and input being gathered from various sectors.

Chaudhry Manzoor proposed a minimum 50 percent raise in salaries of government employees while he also suggested the integration of ad hoc relief into basic pay and the abolition of pension reforms.

The People’s Labour Bureau head also demanded a minimum monthly wage of Rs50,000 for laborers and a 100 percent increase in EOBI pensions.

President Zardari hoped that the federal government would prioritise the welfare of the working class in the budget. He said that societal progress cannot be achieved without providing relief to the working community.

Meanwhile, it was reported that the International Monetary Fund (IMF) has agreed to provide income tax relief to the salaried class

According to official sources, the IMF is now willing to reduce income tax rates across all salary slabs.

Sources revealed that the relief will be granted through amendments to Section 129 of the Income Tax Ordinance, which governs exemptions and concessions.

One of the major changes under discussion includes raising the annual tax-free income threshold from the current Rs600,000 to Rs1 million.

This would mean monthly salaries up to Rs83,000 will become tax-exempt — a substantial increase from the current Rs50,000 exemption limit.