TESCO approves major increase in employees’ allowances

PESHAWAR: The Tribal Areas Electricity Supply Company (TESCO) on Friday approved an increase in the basic salaries and various allowances of its employees, with the revised pay scales and allowances to take effect from July 1, 2026.

According to a notification issued by TESCO, employees will receive a 7% Ad Hoc Relief Allowance on their running basic pay.

The company has also approved a 15% Disparity Reduction Allowance for employees from BPS-1 to BPS-22. The allowance will be calculated on the basis of the basic pay as of June 30, 2022, the notification said.

TESCO has further approved a 50% increase in the conveyance allowance, effective from July 1, 2026.

Meanwhile, the monthly conveyance allowance for employees with disabilities has been increased from Rs6,000 to Rs10,000.

The revised pay scales and allowances will be implemented with effect from July 1, 2026, according to the notification.

Salaries, pensions’ increase announced in federal budget 2026-2027

Earlier, the government had given some sort of relief to current and former government employees, announcing a seven percent increase in salaries and pensions in the budget for 2026-2027.

Addressing the National Assembly on the occasion of presenting the budget for the next financial year, Federal Minister for Finance Muhammad Aurangzeb announced that the government is increasing the salaries of government employees by seven percent, while the same percentage will be raised for retired employees’ pensions.

On the other hand, the government has also announced an uptick in the minimum wage for labor by 10 percent in the next year’s budget.