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Pay Scale Notification for contractual appointees

The Finance Division of the Ministry of Finance has issued a notification concerning the salary and allowances for government employees appointed on a contractual basis, in accordance with the National Pay Scale 2026.

The notification, issued on Wednesday, outlines the terms for determining the salaries, applicable allowances, and pension-related conditions for contractual employees following the implementation of the new pay scale, effective from July 1, 2026.

The notification states that the government has reached this decision to determine the salaries, allowances, and other benefits for individuals appointed on a contractual basis—in the public interest—to various non-military positions within the Republic, including those in government or autonomous institutions, state-owned banks, and financial institutions.

For employees who were appointed on a contractual basis under various grades of the National Pay Scale 2015 prior to July 1, and whose contract terms extend beyond that date, their salaries will be determined in accordance with the National Pay Scale 2026—subject to an amendment of their existing contracts with the government.

Their salaries will be set at the corresponding grade and step effective from July 1. From that date, they will be entitled to receive an increased salary as per the Service (Salary and Allowances) Order 2026, along with any allowances applicable to them under their respective contracts with the government.

For those who have been or will be appointed to contractual positions on or after July 1, their salary for the contractual role will be determined based on the grade and step of the National Pay Scale 2026 that corresponds to the grade and step they held (or would have held) immediately prior to retirement (subject to the amendment of any existing contract, if applicable).

From the date of joining—as per their contract—they will be entitled to an increased salary in accordance with clauses 1(3)(a), 1(3)(b), 1(3)(c) (excluding the annual increment component), and 1(3)(j) of the Service (Salary and Allowances) Order 2026, as well as any allowances applicable to them under their contracts with the government.

For contractual appointments, the remuneration shall be as determined by the government in specific cases, or as stipulated in an agreement reached between the government and the concerned individual.

The notification further specifies that the gross pension (the amount prior to any commutation or surrender) and any special additional pension—if applicable—shall not be deducted from the remuneration fixed for the contractual position. No increments, gratuities, or enhanced pension benefits shall be payable for the period of service rendered under a contractual appointment.

In the case of contractual appointments for individuals other than retired government employees, the terms and conditions—including remuneration and allowances—shall be determined on a case-by-case basis, following an assessment of the merits and through coordination between the Ministry of Public Administration and the Finance Division.

The contractual agreement shall be executed accordingly. Any previous orders, memoranda, or directives that are inconsistent with this notification shall be deemed void to the extent of such inconsistency. Conversely, any previously issued memoranda that are consistent with this notification shall remain in full force and effect.