Budget 2026/27: Civil Servants’ Salaries Raised by 10%

The government has decided to increase the salary of the government employee by 10 % giving continuity to existing dearness allowance.

Presenting the budget in a joint meeting of the federal parliament, Finance Minister Swarnim Wagle announced  that the salary has been increased by up to 21 per cent including a 10 per cent rise in basic salary scale and another 10 per cent based on performance evaluation.

The salary has been increased by 10 percent in the starting scale while continuing the dearness allowance that the employees are currently receiving. Arrangements for a monthly incentive allowance of 10 percent of the new salary scale will be enforced to start the performance-based salary system, he said.

Under the new arrangement, the monthly salary of employees will range from a minimum of about 40,000 rupees to a maximum of more than 100,000 rupees.