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Economics and Finances are one of the most important realities and necessities of life; without which normal life style cannot be achieved. To meet the needs of finances, people do business, take jobs, provide services, become consultants, etc. Generally man makes all possible efforts to meet with the financial requirements. The main source of income is job; work for an organization in case of private sector and for government department in case of public sector. The basic question while adopting job as career is the remuneration and financial benefits in lieu to that job which is generally termed as Salary. Here we shall discuss the salaries of the Government Departments such as Federal Government and Provincial Government Departments viz-a-viz the differences of salaries to special departments and courts. It is general impression that the salaries in Khyber Pakhtun Khawa is higher than Punjab, Sindh, Balochistan and even Federal Departments.


Salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of view of running a business, salary can also be viewed as the cost of acquiring and retaining human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts. Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.

Salary is typically determined by comparing market pay rates for people performing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job in the employer’s employment locale.


In Private Sector, salaries are fixed at certain rates and as per experience & qualification of an individual. Salary is fixed and after certain period of time, it is increased at fix rate of 5%, 10% or 20 % as the case may be. Most of the time salaries do not justify the work load.


In Government Departments, salaries are regulated by Finance Department which is mainly responsible for provision of funds. The general principle is to give equal rights to the citizen of Islamic Republic of Pakistan under the constitution. Uniform policy for distribution of wealth is also emphasized in Islam. Salaries need to be based on equality.

This principle is generally followed but there are exceptions to it in case of special departments, institutes etc. Finance Department has prescribed basic pay scale system after approval of Government. These are enforced all over the Pakistan. One thing needs to be clarified that in Government Departments, salary is the basic pay and allowances are additional benefits granted by Government to its employees. In general, Basic Pay and Allowances constitute the salary. The salary is the combination of:-

Salary=Basic Pay + Allowances.

In the following, we discuss the both constituents one by one and then we shall see the differences in the allowances admissible to different categories of the employees.


“a standard rate of pay which is given before the allowances”.

The scale of basic pay is prescribed by Finance Department and it is revised from time to time as per requirements keeping in view the financial hardships faced by the employees. Basic Pay is uniform throughout Pakistan. For its division, scales are introduced in it. The latest Basic Pay Scales were notified by Federal Government after approval by National Assembly during budget and notified in July, 2017. Presently, Basic Pay Scales are 1 to 22 and their notified rates are as under:-

1 30 9130 290 17830
2 30 9310 330 19210
3 30 9610 390 21310
4 30 9900 440 23100
5 30 10260 500 25260
6 30 10620 560 27420
7 30 10990 610 29290
8 30 11380 670 31480
9 30 11770 730 33670
10 30 12160 800 36160
11 30 12570 800 38970
12 30 13320 960 42120
13 30 14260 1050 45760
14 30 15180 1170 50280
15 30 16120 1330 56020
16 30 18190 1520 64510
17 20 30370 2300 76370
18 20 38350 2870 95750
19 20 59210 3050 120210
20 14 69090 4510 132230
21 14 76720 5000 146720
22 14 82380 5870 164560


Column No.1 indicates pay scales.

Column No.2 indicates its stages.

Column No.3 indicates Minimum or start of the scale.

Column No.4 indicates annual increment.

Column No.5 indicates the Maximum or the last stage of scale.


“an allowance is given in addition to basic pay for specific purpose to an employee”

There are numerous kinds of allowances which usually creates the difference in pay of employees working in Government sector & departments. Special allowances are the main cause of difference of salaries in Government sector. Allowances are also post specified and relate with nature of assignments.


The general and standard allowances prescribed are as under:-

  1. House Rent Allowance @ 45 % of Basic pay at Big Cities and @ 30 % of Basic pay.
  2. Medical Allowance @ 15 of Basic pay.
  3. Conveyance Allowance as per entitlement of scale.


There are other allowances which are job specific such as:-

  1. Dispatch Rider Allowance @ 2500 per month.
  2. Washing Allowance.
  3. Overtime Allowance.
  4. Weather Allowance.
  5. Hill Allowance.
  6. Field Allowance.
  7. Risk Allowance.


Some allowances are Department specific such as:-

  1. Judicial Allowance.
  2. Secretariat Allowance.
  3. Special Allowance.
  4. Utility Allowance.
  5. House Requisition Allowance.


  1. Qualification Allowance.
  2. D Allowance.
  3. Phil Allowance.
  4. Advance Increment.

From the above discussion, it may be inferred safely that if general pay and allowances are applied then there is no difference in salaries of employees irrespective of their postings. It is the special/ department specific allowances which create the difference in salary. Sometimes provincial governments do announce different allowances and at the time of budget grant increase more or less to other provinces.


It is general impression that the salary in Khyber PakhtunKhawa is higher than Punjab, Sindh, Balochistan and even Federal Departments.

One such example is previous KPK Government, which used to grant the increase in salaries more than the Federal Government. In year, 2013, 2014 and 2015, KPK Government did so when they granted 20%, 15% and 15% increase respectively as compared to Federal Government which allowed 10 % every year. Other example is Civil Secretariat where there are allowances such as Utility Allowance, Special Allowance & Secretariat Allowance. Higher Judiciary’s employees enjoy the facility Judicial Allowance which is normally equal to three basic pays.


Salaries of Punjab Government employees are almost same to the Federal Government, it is less than Balochistan Government Employees and equal to the Sindh Government in most of cases.


Salaries of Sindh  Government employees are almost same to the Federal Government, it is less than Balochistan Government Employees and equal to the Punjab Government in most of cases.


Salaries of Balochistan Government are almost same to the Federal Government, it is more than Sindh and Balochistan in most of cases as they enjoy the benefit of House Requisition Allowance.


Salaries in Gilgit Baltistan are less as compared to other provinces as it is new one and benefits are being extended slowly.

Other example is Civil Secretariat where there are allowances such as Utility Allowance, Special Allowance & Secretariat Allowance which are not granted to field offices.

Higher Judiciary’s employees enjoy the facility Judicial Allowance which is normally equal to three basic pays.


Governments in Pakistan have established many special departments, institutes which have special tasks to complete and are awarded with the special salaries. These institutes have SPS, special pay scales and allowances.

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