The federal government is preparing key proposals for the upcoming fiscal year 2026-27 budget. These proposals include possible increases in salaries and pensions for government employees.
Officials have indicated that multiple relief measures are under consideration. These aim to address rising inflation and financial pressure on public sector workers.
Salary and pension hike options being discussed
According to budget sources, authorities are reviewing a salary and pension increase of around 5 to 10 percent. This adjustment aims to support employees facing rising living costs.
In addition, the government is considering merging several ad hoc allowances into the basic pay structure. This step would simplify salary components and improve long-term benefits.
A “disparity allowance” has also been proposed for employees in grades 1 to 16. This measure is intended to support lower and middle-income government staff affected by inflation.
Minimum wage and inflation-linked pension adjustments
The government is also evaluating an increase in the national minimum wage. However, the final figure has not yet been decided.
For pensioners, proposals suggest linking increases to the average inflation rate of the past two years. This approach aims to protect retired employees from rising costs of living.
These measures reflect an effort to balance fiscal constraints with employee welfare needs.
Budget schedule and parliamentary session
The federal budget session has been scheduled to begin on June 5. The National Assembly and Senate will both review the budget proposals during this period.
Initially, the budget presentation was planned for June 1. However, the schedule was revised due to the large number of lawmakers travelling abroad for pilgrimage.
More than 60 members of parliament are currently in Saudi Arabia for Hajj. Their return is expected in early June, allowing them to participate in budget discussions.
IMF engagement and fiscal planning
Officials have also requested that the International Monetary Fund consider easing tax pressure on salaried individuals. A possible 5 to 10 percent reduction in tax burden has been discussed.
These discussions remain part of broader fiscal negotiations and have not yet been finalized.
Next steps in budget approval
The proposals will first be presented to the federal cabinet for review. After approval, they will be tabled in parliament for debate and final decision.
Lawmakers are expected to assess both fiscal limitations and public demand for relief. The final outcome will be announced once parliamentary approval is completed.
Conclusion
The 2026-27 budget discussions signal possible financial relief for government employees and pensioners. However, final decisions will depend on cabinet approval, parliamentary debate, and fiscal negotiations.
