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In a move welcomed by public sector employees and retirees, the Azad Jammu and Kashmir (AJK) government has approved a financial relief package to provide salary and pension increases starting July 1, 2025, despite facing tight budgetary conditions.
According to official notifications, the relief will apply broadly across the government sector, including contractual employees, with certain exclusions.
10% Ad Hoc Relief for Government Employees
All AJK government employees from Basic Pay Scale (BPS) 1 to BPS-22 will receive a 10% ad hoc relief allowance on their basic pay. The increase is:
- Taxable under income tax laws
- Not counted towards pension calculations or house rent allowance
- Applicable to contractual employees working under the same pay scales
- Excludes employees currently serving on foreign assignments
This allowance is meant to ease the burden of inflation and cost of living pressures, especially for lower and middle-grade public servants.
7% Pension Hike for Retirees
In parallel, the government approved a 7% increase in net pensions for all civil pensioners, effective the same date. This includes:
- Family pensions
- Liberalized pensions
- Extraordinary pensions
- Those retiring after July 1, 2025, will also receive the revised rate
Officials clarified that this increase will help retired employees better manage rising costs while recognizing their years of public service.
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No Supplementary Grants to Be Issued
The AJK Finance Department emphasized that the relief package will be funded entirely within the approved fiscal year 2025–26 budget. No supplementary grants or additional borrowing will be used to implement the changes.
Additionally, autonomous institutions under the AJK government may provide similar increases, but only subject to board approvals and availability of funds.
A Balancing Act: Fiscal Prudence and Employee Welfare
Despite facing significant financial constraints, the AJK government says this package reflects a commitment to balancing fiscal discipline with social responsibility.
“Supporting public servants and pensioners remains a key priority for this administration,” said a senior government official. “We are taking every step possible to protect livelihoods while maintaining budgetary control.”
The move is expected to benefit thousands of current employees and retirees across the region, reinforcing the government’s role as both employer and social safety net.
