Government employees protest in Islamabad ahead of 2026-27 budget

Demanding all ad hoc relief allowances be merged into basic pay and revised pay scale for 2026 be introduced

ISLAMABAD:

Government employees on Friday launched a protest in Islamabad, demanding that reforms to their salaries and service structure be included in the upcoming financial plan, as the government is set to unveil a Rs17.5 trillion consolidated budget for the 2026–27 fiscal year later today.

Employees began gathering at Secretariat Chowk, planning a march towards Parliament House after workers arrived from different provinces. The protest follows two days of demonstrations outside the Ministry of Finance, where employees have been pressing for the inclusion of their demands in the upcoming budget.

Upon reaching Parliament House, demonstrators intend to stage a sit-in and will remain there until the government formally accepts their Charter of Demands. The organisers said the protest would include both male and female employees representing a broad spectrum of public-sector departments and pensioners' organisations, including teachers, clerical staff, Class-IV employees, technical personnel and labour organisations.

According to the chief organiser of the All Government Employees Grand Alliance (AGEGA), Rehman Bajwa, the protest will continue outside Parliament House until their demands are accepted.

The employees are calling for their long-standing demands to be incorporated into the Federal Budget 2026–27, including the implementation of a March 2025 agreement. They are demanding that all ad hoc relief allowances be merged into basic pay and that a revised pay scale for 2026 be introduced.

Other key demands include a 50 per cent salary increase for employees earning less than Rs50,000 per month, a 200% increase in conveyance, medical and house rent allowances, and the withdrawal of pension reforms.

They have also called for a 30 per cent disparity reduction allowance, removal of the 25 per cent tax slab for teachers and researchers, and the regularisation of daily-wage and contract employees.

The protesters are further demanding restoration of employment quotas for families of deceased employees and a minimum monthly wage of Rs50,000 for government staff.

Government employees tried to advance towards the Parliament premises as part of their ongoing protest.

Islamabad Police attempted to stop the march, leading to a confrontation between the protesters and law enforcement personnel.

Police resorted to a baton charge to disperse the protesting employees.

Read: Government employees reject token relief

AGEGA leaders speaking to The Express Tribune on June 3 questioned what they termed the selective application of austerity measures, arguing that the International Monetary Fund (IMF) raises no objections when ministers, members of the National Assembly, and senators receive salary increases running into hundreds of thousands of rupees, yet opposes even modest pay rises for government employees.

"Such an approach is no longer acceptable," they said. "If the country is facing a fiscal and economic crisis, why were new expensive aircraft purchased? Government employees and pensioners cannot continue to bear the burden alone."

They have further alleged that amendments to leave encashment rules introduced by the Punjab Government in 2023 deprived employees of substantial leave encashment benefits payable upon retirement.

According to the alliance, the situation worsened following pension reforms introduced on December 2, 2024, which they described as unprecedented and detrimental to government employees.

The AGEGA leadership maintained that retired and serving employees in Punjab are facing significant reductions in pension, gratuity and leave encashment benefits, leaving many under financial strain and psychological stress.