On July 4, 2025, the Finance Ministry officially notified a 10% pay raise for all federal government employees across Grade 1 to 22, along with a 30% Disparity Reduction Allowance (DRA) based on basic pay . Retired civil servants will receive a 7% boost in pensions under the same notification .
The rise applies to basic pay for armed forces, civil armed forces, and civil employees, and is taxable. It does not count towards pension/gratuity or house-rent recovery and isn’t available during overseas deputations
On July 4, 2025, the Finance Ministry officially notified a 10% pay raise for all federal government employees across Grade 1 to 22, along with a 30% Disparity Reduction Allowance (DRA) based on basic pay . Retired civil servants will receive a 7% boost in pensions under the same notification .
The rise applies to basic pay for armed forces, civil armed forces, and civil employees, and is taxable. It does not count towards pension/gratuity or house-rent recovery and isn’t available during overseas deputations


