Punjab Issues Notification for Salary Deductions of Government Employees

LAHORE: The Punjab Finance Department has officially issued a notification announcing salary deductions for government employees as part of austerity measures.

According to the notification, all officers in Grade 17 and above will have two days’ salary deducted, which will be deposited into the federal government’s emergency fund.

In addition, the Chief Minister of Punjab, provincial ministers, special assistants, and parliamentary secretaries will forgo two months’ full salaries, while members of the Punjab Assembly will face a 25 percent salary cut for two months.

The decision follows earlier directives by the Cabinet Division aimed at promoting austerity and reducing fuel consumption. Under the broader policy, senior officials in government institutions and regulatory authorities will also face tiered salary deductions for a period of two months.

As per the slab system, salaries ranging from Rs300,000 to Rs1 million will see a 5 percent cut, those between Rs1 million and Rs2 million will face a 15 percent reduction, salaries between Rs2 million and Rs3 million will be reduced by 25 percent, while individuals earning above Rs3 million per month will face a 30 percent deduction.

Furthermore, government representatives serving on boards of public and private companies will have their fees reduced by 100 percent. All collected funds will be deposited into the “Prime Minister’s Austerity Fund 2026.”

Officials stated that these measures are part of broader efforts to manage expenditures and support the country’s financial stability amid ongoing economic challenges.