Employees of local government institutions across Khyber Pakhtunkhwa have received major financial relief after the Local Council Board approved a 7% ad hoc relief for provincial civil servants, effective from July 1, 2026.

The decision will benefit employees working under the Local Council Board, Town Municipal Administrations (TMEs), Capital Metropolitan and the Local Governance School.

The Local Council Board has approved a 7% ad hoc relief allowance for employees of the relevant local government institutions in line with the provincial government’s decision for provincial civil servants.

The relief will take effect from July 1, 2026, providing additional financial support to employees amid rising living costs.

Conveyance allowance increased

The Local Council Board has also issued a notification regarding an increase in conveyance allowance for employees of local bodies.

Under the approved measures, the special conveyance allowance for disabled government employees has been increased from Rs6,000 to Rs10,000 per month.

7% increase in pension approved

In another major decision, the board approved a 7% increase in the net pension of local government employees.

The pension increase is part of a broader package aimed at extending the benefits approved by the provincial government to employees and pensioners associated with local government institutions.

The Local Council Board approved increases in incentives and pensions for all relevant local government bodies in accordance with decisions already taken by the Khyber Pakhtunkhwa government.

The measures are expected to provide financial relief to serving employees as well as retired personnel of the province’s local government system.