In a welcome move for public sector workers, the Azad Jammu and Kashmir (AJK) government has approved a financial relief package for employees and pensioners, effective July 1, 2025, amid ongoing fiscal constraints.
According to official notifications cited, all AJK government employees from BPS-1 to BPS-22 will receive a 10% ad hoc relief allowance on their basic pay. The increase, while taxable, will not be included in pension calculations or house rent allowances. The package will also apply to contractual employees, though those on foreign assignments are excluded.
Civil pensioners will benefit from a 7% increase in net pensions, which will also apply to family, liberalized, and extraordinary pensions. The raise covers both current and new pensioners who retire after July 1.
The government emphasized that these increases will be managed within the existing fiscal year 2025–26 budget allocations, with no new supplementary grants to be issued. Autonomous institutions may offer similar benefits, subject to board approval and available funds.
Officials said the move demonstrates the government’s efforts to balance fiscal discipline with employee welfare. Despite financial challenges, supporting public servants and retirees remains a core policy focus for the AJK administration.
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