December is an important month for government employees in Pakistan because eligible employees receive their annual salary increment on December 1 every year. The December 2026 annual increment is particularly important following the introduction of the revised Basic Pay Scales (BPS-2026), effective from July 1, 2026.
According to the Finance Division’s notification dated July 21, 2026, the annual increment will continue to be granted on December 1 under the applicable rules and conditions.
The new pay scales specify different annual increment amounts for each Basic Pay Scale (BPS). In addition, eligible federal employees receiving the 7% Ad-hoc Relief Allowance 2026 may also benefit from an increase in that allowance when their running basic pay increases.
In this article, we explain the three important annual increment rules, grade-wise increment amounts, the six-month service requirement, and the impact on monthly and yearly salaries.
Annual Increment Date 2026 – Will It Be Granted on December 1?
Yes. Under the applicable federal government pay rules, the annual increment is normally granted on December 1 every year, subject to the required service conditions.
Therefore, eligible federal government employees can expect their annual increment on December 1, 2026.
According to government of Pakistan rule and notification, The increment will be added to the employee’s existing basic pay according to the relevant BPS-2026 pay scale.
BPS-01 to BPS-22 Annual Increment Chart 2026
| No. | Pay Scale | Annual Increment (INC) | Estimated 7% ARA Increase | Total Estimated Increase |
|---|---|---|---|---|
| 1 | BPS-01 | 520 | 36 | 556 |
| 2 | BPS-02 | 590 | 41 | 631 |
| 3 | BPS-03 | 700 | 49 | 749 |
| 4 | BPS-04 | 800 | 56 | 856 |
| 5 | BPS-05 | 910 | 64 | 974 |
| 6 | BPS-06 | 1,010 | 71 | 1,081 |
| 7 | BPS-07 | 1,100 | 77 | 1,177 |
| 8 | BPS-08 | 1,210 | 85 | 1,295 |
| 9 | BPS-09 | 1,310 | 92 | 1,402 |
| 10 | BPS-10 | 1,430 | 100 | 1,530 |
| 11 | BPS-11 | 1,580 | 111 | 1,691 |
| 12 | BPS-12 | 1,720 | 120 | 1,840 |
| 13 | BPS-13 | 1,880 | 132 | 2,012 |
| 14 | BPS-14 | 2,090 | 146 | 2,236 |
| 15 | BPS-15 | 2,380 | 167 | 2,547 |
| 16 | BPS-16 | 2,720 | 190 | 2,910 |
| 17 | BPS-17 | 4,110 | 288 | 4,398 |
| 18 | BPS-18 | 5,120 | 358 | 5,478 |
| 19 | BPS-19 | 5,450 | 382 | 5,832 |
| 20 | BPS-20 | 8,040 | 563 | 8,603 |
| 21 | BPS-21 | 8,920 | 624 | 9,544 |
| 22 | BPS-22 | 10,470 | 733 | 11,203 |
Note: The 7% ARA figures are estimates of the additional allowance increase, not the total salary increase. Please verify the figures against the applicable official Finance Division notification before publication.
These amounts are added to the employee’s basic salary. The applicable increment depends on the employee’s grade, pay stage, and service record.
7% ARA-2026 – Additional Monthly Salary Increase
The federal government has announced a 7% Ad-hoc Relief Allowance 2026 based on running basic pay.
When an employee receives an annual increment, their running basic pay increases. Consequently, the amount of ARA-2026 may also increase.
The following table shows the estimated combined monthly effect of the annual increment and the additional 7% ARA-2026 amount.
| BPS Grade | Basic Increment | Additional 7% ARA | Total Monthly Increase |
|---|---|---|---|
| BPS-01 | Rs. 520 | Rs. 36 | Rs. 556 |
| BPS-11 | Rs. 1,580 | Rs. 111 | Rs. 1,691 |
| BPS-16 | Rs. 2,720 | Rs. 190 | Rs. 2,910 |
| BPS-17 | Rs. 4,110 | Rs. 288 | Rs. 4,398 |
| BPS-22 | Rs. 10,470 | Rs. 733 | Rs. 11,203 |
Important: These figures represent the basic annual increment plus its estimated additional effect on ARA-2026. They do not represent the complete increase in take-home salary. Taxes, deductions, other allowances, and individual pay details can change the final amount.
BPS-17 Annual Increment 2026 – Complete Salary Calculation
BPS-17 employees have an annual basic increment of Rs. 4,110 under the stated BPS-2026 rates.
For example, suppose an employee’s basic salary before the December increment is Rs. 54,140.
The calculation will be:
- Basic salary before increment: Rs. 54,140
- Annual basic increment: Rs. 4,110
- Revised basic salary: Rs. 58,250
- Additional 7% ARA-2026 effect: Approximately Rs. 288
- Combined monthly increase: Approximately Rs. 4,398
The estimated yearly additional amount is:
Rs. 4,398 × 12 = Rs. 52,776
This calculation assumes that the additional monthly amount remains payable for all 12 months. Actual salary benefits may differ depending on applicable rules and individual circumstances.
3 Important Rules for the December Annual Increment 2026
Government employees should understand these three important rules before the December increment.
Rule 1: Six Months of Qualifying Service Is Required
An employee generally needs to complete at least six months of qualifying service in the relevant pay scale before becoming eligible for the annual increment.
The service period is considered according to the applicable government pay rules.
Employees should check their joining date, promotion date, pay fixation, and service record to determine their eligibility.
Rule 2: Joining or Promotion Date Matters
Under the general six-month service requirement:
- Employees who joined the relevant pay scale on or before June 1 may qualify for the December 1 increment if they complete the required qualifying service by November 30.
- Employees who joined on or after June 2 generally do not complete six months of service by November 30 and may have to wait until the following increment cycle.
The same principle may apply to employees promoted to a higher pay scale, subject to the applicable pay fixation and service rules.
Note: Eligibility should not be determined by joining date alone. The relevant department must consider the employee’s service record and applicable rules.
Rule 3: The Increment Can Also Affect Certain Allowances
The annual increment increases the employee’s running basic pay.
As ARA-2026 is calculated as a percentage of running basic pay, an increase in basic salary may also increase the amount of this allowance.
However, not every allowance increases automatically. Some allowances are fixed, while others are governed by separate rules.
Will ARA-2023 and ARA-2024 Also Increase?
No automatic increase should be assumed for ARA-2023 and ARA-2024.
According to the Finance Division clarification dated August 4, 2026, these allowances remain frozen at their applicable levels.
Therefore, the December annual increment does not automatically increase ARA-2023 or ARA-2024.
ARA-2026, on the other hand, is linked to running basic pay at the applicable 7% rate. Its additional amount may therefore change when basic pay increases.
Annual Increment Rules for Employees Near Retirement
Employees approaching retirement should pay particular attention to the annual increment rules.
It is not always correct to say that an employee retiring before December 1 cannot receive any benefit from an increment.
Under the applicable retirement-related rules, a retiring civil servant who completes the required six months of qualifying service in the relevant year may qualify for the increment for pension calculation purposes, even if the normal December 1 increment date falls after retirement.
This is a special retirement-related provision and should not be confused with granting a regular annual increment every year to an already retired pensioner.
Employees approaching retirement should confirm their individual cases with their departmental accounts office or the relevant authority.
Will the Entire Monthly Salary Increase by the Same Amount?
Not necessarily.
The annual increment is added to basic pay. Certain allowances linked to running basic pay may also increase, but fixed or frozen allowances may remain unchanged.
To calculate the actual monthly salary increase, employees should consider:
- Current basic salary
- Annual increment for their BPS grade
- Applicable ARA-2026
- Frozen allowances
- Other applicable allowances
- Tax and other deductions
- Department-specific pay rules
Therefore, the estimated increment amount should not be confused with the final take-home salary increase.
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Frequently Asked Questions (FAQs)
1. When will the annual increment be granted in 2026?
The annual increment for eligible federal government employees is normally granted on December 1, 2026, subject to the applicable service conditions.
2. What is the annual increment for BPS-11 in 2026?
The stated BPS-2026 annual basic increment for BPS-11 is Rs. 1,580. Including the estimated additional effect of 7% ARA-2026, the combined monthly increase is approximately Rs. 1,691.
3. How much will BPS-16 employees receive as an annual increment?
The annual basic increment for BPS-16 is Rs. 2,720. Including the estimated additional ARA-2026 effect, the combined monthly increase is approximately Rs. 2,910.
4. What is the annual increment for BPS-17 employees?
The BPS-17 annual basic increment is Rs. 4,110. Including the estimated additional ARA-2026 effect, the combined monthly increase is approximately Rs. 4,398.
5. Will employees who joined on June 2 receive the December increment?
Under the general six-month qualifying service requirement, employees joining on June 2 or later generally do not qualify for the December 1 increment in the same year. Individual cases should be checked against the applicable service rules.
6. Will ARA-2023 and ARA-2024 increase after the annual increment?
No automatic increase applies to these frozen allowances. ARA-2026 is linked to running basic pay and may increase when basic pay increases.
7. Can employees retiring before December receive an increment benefit?
Eligible employees may qualify for an increment for pension calculation purposes under the applicable retirement-related rules if they complete the required qualifying service. Individual cases should be verified with the accounts office.
8. Will provincial government employees receive the same annual increment?
The federal government’s pay notification applies to federal employees. Provincial government employees should check their respective provincial finance department notifications and adopted pay rules.
Final Words
The December 2026 annual increment is an important salary benefit for eligible government employees in Pakistan. Under the BPS-2026 pay structure, each grade has a specified annual increment amount.
Employees should understand the six-month qualifying service requirement, joining and promotion dates, and the effect of the increment on applicable allowances.
For more information about government salaries, BPS pay scales, annual increments, pension updates, and finance notifications, visit SalaryPer.com.
Disclaimer: This article is prepared for informational purposes. It primarily discusses federal government employees. Rules may differ for provincial governments, autonomous bodies, and individual departments. Employees should confirm their eligibility and final salary calculations with their respective accounts office or department.
