Federal employees reject 7% pay raise, announce strike and protests 

Federal government employees and several trade unions have announced a strike against the 7% salary increase proposed in the federal budget for fiscal year 2026-27, arguing that the adjustment does not reflect rising living costs.

As per reports, representatives of employee organisations said higher prices of essential goods, fuel and utilities had placed growing pressure on household budgets, while the proposed salary increase offered insufficient relief.

Trade union leader Rahman Bajwa said government employees had expected a larger pay increase to offset inflation and expressed disappointment with the budget measures.

Unions representing railway workers, Water and Power Development Authority employees, municipal committees, tehsil municipal administrations and district councils announced demonstrations against the proposed increase.

Union leaders said employees had exhausted other options and would take to the streets to press the government to revise the salary adjustment.

The protesters also announced a “Jail Bharo Tehreek”, saying they were prepared to face arrest if their demands were not addressed.

Employee representatives cited increases in the prices of milk, ghee, sugar, chicken, beef and mutton, along with higher fuel and utility costs, as major pressures on salaried households.

They also criticised the closure of Utility Stores, saying the outlets had previously provided some relief to low-income families through subsidised goods.

Federal employees attempted to march towards Parliament House, but police and Frontier Corps personnel restricted access to the area.

The demonstrators subsequently staged a sit-in outside Parliament and continued their protest amid the security deployment.

The federal budget proposes a 7% increase in salaries for public-sector employees and a similar increase in pensions for retired government workers.