PESHAWAR: The Peshawar Electric Supply Company (PESCO) has approved a package of salary, allowance, and pension-related increases for its serving and retired employees, with the measures taking effect from July 1, 2026.
According to a PESCO notification, the company has introduced a 15% Disparity Reduction Allowance (DRA) for employees. The allowance will be calculated on the basis of basic salaries as they stood on June 30, 2022, while the applicable terms and conditions will follow those of the federal government.
PESCO has also increased the special convenience allowance for employees with disabilities from Rs6,000 to Rs10,000. In addition, the standard convenience allowance available to employees has been increased by 50%, providing additional financial support to the company’s workforce.
The decision also covers PESCO’s retired employees. Under the approved package, pensions have been increased by 7% with effect from July 1, 2026. The company has directed the relevant departments to implement all approved salary, allowance and pension measures from the same date.
The latest measures are expected to provide financial relief to both serving and retired PESCO employees. The revisions come amid broader changes in employee compensation across Pakistan’s public sector, including federal notifications issued during July 2026 regarding pay scales, allowances and disparity reduction allowances.
The move is likely to improve the financial benefits available to PESCO workers and retired staff, while bringing several compensation components in line with recently revised government arrangements.
