MUZAFFARABAD – The Azad Jammu and Kashmir (AJK) government has announced a financial relief package for public sector employees and pensioners, effective July 1, 2025, even as it grapples with tight fiscal conditions.
Under the approved plan, all government employees from BPS-1 to BPS-22 will receive a 10% ad hoc relief allowance on their basic pay. The increase is taxable but will not count toward pension calculations or house rent allowances. Contractual employees will also benefit, though those on foreign assignments are excluded.
Pensioners to get 7% raise
Civil pensioners will see a 7% increase in net pensions, covering family, liberalized, and extraordinary pensions. The hike applies to both current pensioners and those retiring after July 1.
No extra funding, managed within existing budget
The AJK government clarified that the salary and pension increases will be managed within the existing fiscal year 2025–26 budget allocations, with no new supplementary grants. Autonomous institutions may extend similar benefits, but only if their boards approve and funds are available.
Officials said the move reflects the administration’s commitment to employee welfare, even while maintaining fiscal discipline amid economic challenges.
