Federal Employees to Receive Salary Increase 2025

The federal government has notified a 10% pay raise for employees of the armed forces, civil armed forces, and federal civil departments, effective from July 1, 2025, along with a 30% disparity allowance for employees from Grade 1 to Grade 22.

The salary increment will be applied to the current basic pay of all relevant employees, including those on contract basis. The 30% disparity reduction allowance has been approved based on the basic pay of employees as of June 30, 2022. This move is part of the budget for the coming fiscal year, aiming to raise the salaries of federal employees from Grade 1 to 22 by 10%.

The pay hike applies to armed forces personnel, civil armed forces, and civil employees of the federal government, subject to income tax and certain conditions. Retired government servants will also be eligible for a 7% pension increase. Additionally, a separate notification grants Disparity Reduction Allowance (DRA) at 30% of basic pay to federal government employees from Grades 1-22, with certain conditions applying to new appointments.

This latest salary increase is part of a series of hikes, including a significant increase for the Senate chairman and National Assembly speaker, and an adjustment in salaries of federal ministers and ministers of state to match those of National Assembly members. The Finance Ministry has issued notifications for the 10% increase in salaries and the granting of Disparity Reduction Allowance (DRA) worth 30% of basic pay.

The government's decision to increase salaries and introduce a disparity reduction allowance is expected to have a positive impact on the lives of federal government employees, providing them with a better standard of living and greater financial security.