The Pakistan federal budget for FY 2026-27 announced a 7 percent adhoc relief allowance for all government employees on the BPS scale. This is the latest in a series of annual adhoc reliefs announced since 2022.
What Is the 7 Percent Adhoc Relief?
Adhoc relief is a temporary pay increase announced in the federal budget. It is added as a separate allowance on top of basic pay and all previous adhoc reliefs. It is not merged into basic pay.
How the 7 Percent ARA Adds to Previous Relief
Government employees currently receive three layers of adhoc relief on top of their basic pay. ARA 2022 at 15 percent. ARA 2025 at 25 percent. And now ARA 2026 at 7 percent. This means total adhoc relief has reached 47 percent of basic pay on top of the base salary.
How It Affects Your Net Salary
The new relief increases gross pay before income tax is applied. For a BPS-17 employee at the initial stage, the 7 percent ARA adds approximately Rs 4,000 to Rs 6,000 to monthly gross depending on the increment. After income tax, the net increase is somewhat lower.
Use the free Salary Calculator to see your exact revised take home with all ARAs applied.
Income Tax Impact
The higher gross salary may push some employees into a higher income tax slab. The FY 2025-26 salaried slabs apply. Income above Rs 2.4 million annually is taxed at 25 percent of the excess plus Rs 210,000. The salary calculator applies all slabs automatically.
Frequently Asked Questions
Is the 7 percent ARA permanent? No. It is an adhoc relief, meaning it is temporary. It may be merged into basic pay in a future pay commission.
Does it apply to all BPS grades? Yes. The relief applies to all basic pay scale employees from BPS-1 to BPS-22.
How do I calculate my new salary? Use the Salary Calculator — select your BPS grade and step and the tool applies all ARAs automatically.
What was the previous relief? ARA 2025 was 25 percent and ARA 2022 was 15 percent of basic pay.