Federal Budget 2026-27 · Effective 1 July 2026
Pay Scale 2026-27: BPS 1 to 22 Revised Basic Pay Chart & Salary Calculator
The complete pay scale 2026-27 guide for federal government employees — revised RBPS-2026 basic pay for every grade from BPS-1 to BPS-22, step-by-step salary calculation, pension increase, income tax slab changes, and a live salary calculator.
Official Notifications — 21 July 2026
The Ministry of Finance issued three separate Office Memoranda on 21 July 2026, formally notifying the pay scale 2026-27 package. These replace the earlier tentative/unofficial fixation charts that circulated after the budget speech.
Revision of Basic Pay Scales & Allowances 2026
Introduces Basic Pay Scales-2026 by merging ARA-2022 and ARA-2025 into basic pay, replacing BPS-2022 w.e.f. 01-07-2026. Also notifies the 7% ARA-2026. Employees have a 30-day irrevocable option to remain on BPS-2022 or move to BPS-2026 (deemed opted-in if no option is filed).
Revision in Conveyance Allowance Rates
Approves a 50% increase in conveyance allowance for BPS 1-22 on existing terms and conditions, w.e.f. 01-07-2026, with exact revised rupee rates for four grade bands.
Grant of Disparity Reduction Allowance-2026
Approves DRA-2026 @ 15% of Basic Pay as on 30-06-2022, w.e.f. 01-07-2026 — limited to employees in BPS 1-22 who are already in receipt of Disparity Reduction Allowance, on existing terms and conditions.
📋 Table of Contents
- Official Notifications — 21 July 2026
- What Changed in Pay Scale 2026-27
- What is RBPS-2026? The Basic Pay Merger Explained
- Pay Scale 2026-27 Chart: BPS-1 to BPS-22
- Full Comparison Table (2022 vs 2026)
- How to Calculate Your New Salary — Step by Step
- Conveyance Allowance 2026-27 — Official Rates
- Pension Increase 2026-27
- Income Tax Slab Changes 2026-27
- Budget 2024-25 vs 2025-26 vs 2026-27
- Frequently Asked Questions
What Changed in Pay Scale 2026-27
Finance Minister Muhammad Aurangzeb first announced the pay scale 2026-27 package in the National Assembly on 12 June 2026, and the Ministry of Finance formally notified it through three Office Memoranda on 21 July 2026, effective 1 July 2026. The package has five components that work together — not a single percentage.
- 📊7% Ad-hoc Relief Allowance (ARA-2026) — calculated on the new, merged RBPS-2026 basic pay, not the old 2022 figure.
- 🔗RBPS-2026 basic pay merger — ARA-2022 (15%) and ARA-2025 (10%) permanently absorbed into basic pay, raising the base by ~25% before the 7% is applied.
- ⚖️15% Disparity Reduction Allowance (DRA-2026) — confirmed by OM No. 14(2)R-3/2025. Calculated at 15% of Basic Pay as it stood on 30-06-2022. This is not for all BPS 1-22 employees — it applies only to those who were already drawing a Disparity Reduction Allowance under earlier orders.
- 🚌50% conveyance allowance increase — confirmed by OM No. 3(1)R-5/2010-P-001, with official rupee rates now published for four grade bands (see the Conveyance section below).
- 📉Income tax slab reductions across 4 annual income brackets — primarily benefitting BPS-17 and above officers.
What is RBPS-2026? The Basic Pay Merger Explained
RBPS-2026 (Revised Basic Pay Scales 2026) is the most structurally important change in the pay scale 2026-27 package. Budget 2026-27 permanently merged two existing ad hoc allowances into basic pay:
- ✅ARA-2022 (15%) — the ad hoc allowance granted in Budget 2022-23, now absorbed into basic pay permanently.
- ✅ARA-2025 (10%) — the ad hoc allowance granted in Budget 2025-26, also permanently merged.
Their combined effect raises every grade’s minimum basic pay by approximately 25% compared to the pre-merger 2022 scale. Employees who were drawing ARA-2022 and ARA-2025 as separate lines on their pay slips will see those lines disappear — replaced by a higher basic pay under RBPS-2026.
Why this matters more than the 7%: Once merged, the higher basic pay compounds with every annual increment, pension calculation, house rent allowance, and all other allowances linked to basic pay. The ARA-2023 and ARA-2024 allowances remain outside the basic pay structure for now.
Pay Scale 2026-27 Chart: BPS-1 to BPS-22
Minimum basic pay comparison — all 22 grades
Tap or hover a bar for the exact figure. The 2026 bar reflects RBPS-2026 merged basic pay per Annexure-VII.
Full Pay Scale 2026-27 Comparison Table
The table below shows the revised minimum basic pay for each grade under RBPS-2026, alongside the increase in rupees and percentage. The 7% ARA-2026 is calculated on the RBPS-2026 figure (column 3), not the 2022 basic.
| BPS | Min Basic 2022 | RBPS-2026 Min Basic | Increase (Rs.) | % Increase | Typical Posts |
|---|
Source: Ministry of Finance OM No. F.1(2)IMP/2026, dated 21 July 2026. Figures are minimum basic pay (Stage 1). Your actual basic depends on your increment stage. Confirm with your DDO/AGPR office.
How to Calculate Your New Salary — Step by Step
Applying the pay scale 2026-27 correctly requires following the steps in sequence. Most errors happen when employees apply 7% to their old 2022 basic pay, skipping the RBPS-2026 merger step entirely.
For a personalised calculation using your own basic pay and increment stage, use the Federal Salary Increase Calculator on newpakistanjobs.com.
Conveyance Allowance 2026-27 — Official Rates
OM No. 3(1)R-5/2010-P-001, dated 21 July 2026, confirms a 50% increase in the monthly conveyance allowance for civil servants in BPS 1-22, on existing terms and conditions, effective 01-07-2026. Unlike basic pay, conveyance allowance is a flat rupee amount by grade band, not tied to your increment stage.
| BPS | Existing Rate | Revised Rate (from 01-07-2026) |
|---|---|---|
| BPS 1-4 | Rs. 1,785 | Rs. 2,678 |
| BPS 5-10 | Rs. 1,932 | Rs. 2,898 |
| BPS 11-15 | Rs. 2,856 | Rs. 4,284 |
| BPS 16 and above | Rs. 5,000 | Rs. 7,500 |
Source: Ministry of Finance OM No. 3(1)R-5/2010-P-001, dated 21 July 2026.
Pension Increase in Pay Scale 2026-27
Retired federal government employees will receive a 7% increase in net pension effective 1 July 2026, confirmed by Finance Minister Aurangzeb in the budget speech on 12 June 2026. The calculation is direct: apply 7% to your current monthly net pension.
- 👴Retiree drawing Rs 35,000/month → gains Rs 2,450 → new pension: Rs 37,450
- 👴Retiree drawing Rs 50,000/month → gains Rs 3,500 → new pension: Rs 53,500
- 👴Retiree drawing Rs 80,000/month → gains Rs 5,600 → new pension: Rs 85,600
For serving employees, the bigger pension-related gain is the RBPS-2026 merger. Employees retiring in FY2027 or later will retire on the merged, higher basic pay — permanently raising their monthly pension for life. Use our Pension Calculator Pakistan 2026-27 to estimate your retirement pension under the new scale.
Income Tax Slab Changes for Salaried Employees 2026-27
Finance Minister Aurangzeb announced income tax reductions across four annual income brackets in Finance Bill 2026-27, effective 1 July 2026. For most BPS-1 to BPS-16 employees, no slab changed — their real gain from the pay scale 2026-27 package is entirely from salary and conveyance adjustments. The tax relief primarily benefits BPS-17 and above officers.
| Annual Income | Old Rate (FY2025-26) | New Rate (FY2026-27) | Change | Monthly Range |
|---|---|---|---|---|
| Up to Rs 600,000 | 0% | 0% | No change | Up to Rs 50,000 |
| Rs 600,001 – Rs 1,200,000 | 1% | 1% | No change | Rs 50K – Rs 100K |
| Rs 1,200,001 – Rs 2,200,000 | 11% | 11% | No change | Rs 100K – Rs 183K |
| Rs 2,200,001 – Rs 3,200,000 | 23% | 20% | −3 pts | Rs 183K – Rs 267K |
| Rs 3,200,001 – Rs 4,100,000 | 30% | 25% | −5 pts | Rs 267K – Rs 342K |
| Rs 4,100,001 – Rs 5,600,000 | 35% | 29% | −6 pts | Rs 342K – Rs 467K |
| Rs 5,600,001 – Rs 7,000,000 | 35% | 32% (new slab) | New bracket | Rs 467K – Rs 583K |
| Above Rs 7,000,000 | 35% + 9% surcharge | 35% | Surcharge abolished | Above Rs 583K |
Source: Finance Bill 2026-27, National Assembly, 12 June 2026. Effective Tax Year 2027.
Use our Federal Employee Salary & Tax Calculator to see your exact monthly tax deduction under the new slabs.
Budget 2024-25 vs 2025-26 vs 2026-27: Pay Scale Comparison
The three-year trajectory reveals a clear pattern: smaller headline percentages paired with structural reforms in years with IMF fiscal constraints.
Budget 2024-25
- ✔ Flat 10% for all BPS grades
- ✔ 10% pension increase
- ✘ No basic pay merger
- ✘ No DRA announced
Budget 2025-26
- ✔ 10% for BPS-1 to 16
- ✔ 15% for BPS-17 to 22
- ✔ 30% DRA for eligible grades
- ✔ 7% pension increase
- ✘ No basic pay merger
Budget 2026-27 (Current)
- ✔ Flat 7% ARA across all grades
- ✔ RBPS-2026 merger (~+25% basic)
- ✔ 15% DRA eligible categories
- ✔ 50% conveyance increase
- ✔ Income tax slab reductions
A BPS-17 officer receives a lower headline percentage in FY2027 than in FY2026, but the RBPS-2026 merger is a structural gain with permanent compounding effects on pension and all basic-pay-linked entitlements. Measuring the pay scale 2026-27 by the 7% headline alone misses the bigger picture.
Frequently Asked Questions — Pay Scale 2026-27
What is the confirmed salary increase in pay scale 2026-27 for federal government employees?
Finance Minister Muhammad Aurangzeb confirmed a 7% Ad-hoc Relief Allowance (ARA-2026) on revised basic pay for all federal employees from BPS-1 to BPS-22, effective 1 July 2026. Crucially, this 7% is calculated on the RBPS-2026 revised basic pay — which is already ~25% higher than the 2022 basic due to the merger of ARA-2022 and ARA-2025. The total effective increase is significantly higher than 7% alone.
What is RBPS-2026 and how does it affect my pay scale?
RBPS-2026 (Revised Basic Pay Scales 2026) permanently merges the ARA-2022 (15%) and ARA-2025 (10%) into the basic pay structure, raising every grade’s minimum basic pay by approximately 25%. The ARA-2026 (7%) is then calculated on this higher merged basic. This is now confirmed by Finance Division OM No. F.1(2)IMP/2026 dated 21 July 2026, which sets out the exact grade-by-grade minimum, increment, and maximum figures for BPS-2026.
Is this pay scale revision the same as a salary increase?
It is both. The RBPS-2026 merger is a structural pay scale revision that permanently raises basic pay. The 7% ARA-2026, 15% DRA, and 50% conveyance increase are separate allowances on top of the revised basic. The structural merger is the more impactful long-term change for pension and increment compounding.
Does the pay scale 2026-27 revision apply to provincial government employees?
No. This revision covers federal government employees in BPS-1 to BPS-22. Provincial governments — Punjab, Sindh, KPK, Balochistan — announce their own separate pay scale revisions. Punjab’s pension increase for 2026-27 was set at 3.5%, for example, compared to the federal 7%.
What is the pension increase in pay scale 2026-27?
Retired federal employees receive a 7% increase in net pension effective 1 July 2026. Apply 7% directly to your current monthly net pension. Serving employees additionally benefit from the RBPS-2026 merger, which permanently raises their pensionable basic pay base for future retirement calculations. Use our Pension Calculator to estimate your future pension.
Who is eligible for the 15% Disparity Reduction Allowance (DRA-2026)?
Per OM No. 14(2)R-3/2025 dated 21 July 2026, DRA-2026 is granted at 15% of Basic Pay as it stood on 30-06-2022, effective 01-07-2026. It is available only to employees in BPS 1-22 who were already in receipt of a Disparity Reduction Allowance under earlier orders — it is not a new, universal allowance for every employee.
Which income tax slabs changed for salaried employees in 2026-27?
Four annual income brackets were revised: Rs 2.2–3.2M dropped from 23% to 20%; Rs 3.2–4.1M from 30% to 25%; Rs 4.1–5.6M from 35% to 29%; a new Rs 5.6–7.0M slab at 32% was created. The surcharge on higher-income earners was abolished. Brackets below Rs 2.2M annually — covering most BPS-1 to BPS-16 employees — were unchanged. All effective 1 July 2026.
Where can I verify the exact pay scale 2026-27 figures for my grade?
The grade-wise minimum, increment, and maximum figures on this page now reflect the official Finance Division OM No. F.1(2)IMP/2026 dated 21 July 2026. Your exact monthly basic pay still depends on your individual increment stage, which is fixed point-to-point above the BPS-2022 minimum — confirm your specific stage with your Drawing and Disbursing Officer (DDO) or AGPR office.
Related Calculators & Guides
Pay Scale 2026 Official Notifications
- Age Calculator Online – Check Your Exact Age & Govt Job Eligibility Instantly
- Federal Employee Salary & Tax Calculator Pakistan 2026-27 Pakistan
- Federal Salary Increase Calculator 2026-27
- Free Online Resume Builder 2026 — 25+ Professional Templates
- Free PDF Converter Online — PDF to Word, JPG, PPT, Excel
- GP Fund & Retirement Benefits Calculator 2026
- Monthly Salary Budget Planner: How to Budget Your Income in Any Currency
- New Pakistan Jobs – Pakistan’s Trusted Hub for Government Jobs, Career Tools & Career Growth
- Pension Calculator Pakistan 2026-27
- Privacy Policy
5 thoughts on “Pay Scale 2026-27: BPS 1 to 22 Revised Basic Pay Chart & Salary Calculator”