There was no single salary deduction for every government official in Pakistan. Under measures announced in March 2026, specified senior managers at public bodies faced tiered deductions from gross salary for two months, while separate provisions for ministers, legislators and some officials were described as voluntary. The March measure was time-limited; a later Cabinet Division austerity notice dated September 17, 2026, does not announce a salary deduction.
Which officials were covered by the tiered salary deduction?
The Cabinet Division’s March 14, 2026 notification applied the tiered deduction to higher management at statutory and autonomous bodies, regulatory authorities and state-owned enterprises. It named positions including chief executives, executive directors, directors and senior managers. The rates were based on gross monthly salary, not take-home pay, and the notification specified a two-month period. Cabinet Division notification, March 14, 2026
| Gross monthly salary | Deduction rate | Stated duration |
|---|---|---|
| Rs. 300,000 to Rs. 1,000,000 | 5% | Two months |
| Rs. 1,000,001 to Rs. 2,000,000 | 15% | Two months |
| Rs. 2,000,001 to Rs. 3,000,000 | 25% | Two months |
| More than Rs. 3,000,000 | 30% | Two months |
The notification said the proceeds were to go to the Prime Minister’s Austerity Fund 2026. These bands do not establish a deduction for every public-sector employee: the order’s specified group is higher management in the named types of bodies.
How much would be deducted from a covered salary?
For a covered executive earning Rs. 500,000 in gross monthly salary, the 5% rate equals Rs. 25,000 for each covered month. If applied for both months, the total would be Rs. 50,000. At a gross monthly salary of Rs. 1,500,000, the 15% band equals Rs. 225,000 per month, or Rs. 450,000 over two months if applied for the full period. These are calculations from the published rates, not predictions about an individual payslip; the notification does not establish each employer’s payroll implementation or treatment of partial months.
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How did the other March measures differ?
Other March notifications set out separate measures with different groups, bases and wording. They should not be combined with the tiered deduction as if all officials faced the same compulsory rate. Cabinet Division notifications, March 2026
| Group | Measure described | Duration and conditions |
|---|---|---|
| Cabinet ministers, ministers of state, advisers and special assistants to the prime minister in federal and provincial cabinets | Voluntarily forgo salary and allowances | Two months |
| Members of federal and provincial legislatures | Voluntary 25% cut in salary and allowances | Two months |
| Officials in BS-20 or equivalent, or earning at least PKR 300,000 a month regardless of pay scale | Could voluntarily forgo two days’ salary | Officials serving in health and education sectors were excluded |
For the latter groups, the notification’s terms matter: “voluntarily” and “may” do not describe the same order as the tiered deduction for senior management at specified public bodies.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Was the March deduction still in force in October 2026?
The March notice described its tiered measure as applying for the next two months, so its rates should not be presented as a continuing deduction in October. A later Cabinet Division austerity notice dated September 17, 2026, announced other measures, including a three-month fuel reduction and a 5% reduction in non-ERE budgets for FY 2026–27; it did not state a salary deduction. The 5% budget reduction is a budget measure, not a deduction from an employee’s pay. Cabinet Division austerity notice, September 17, 2026
The later notice does not establish whether any newer salary-specific order was issued. The Cabinet Division’s notifications index lists austerity notices, but employees should check for a subsequent order and confirm implementation with their institution or payslip before assuming a deduction applies.
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What to check if you are an affected employee
- Confirm whether your employer is a statutory or autonomous body, regulatory authority or state-owned enterprise, and whether your role falls within the higher-management group covered by the March order.
- Check the gross monthly salary used by your institution and the relevant published band; the table is not a net-pay calculation.
- Ask your institution whether it applied the measure and how it handled the specified two-month period. The notification alone does not prove that every covered employer completed deductions.
- For a voluntary waiver provision, verify that your group and circumstances fit that separate notification rather than assuming the senior-management tiers apply.
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