A major update has been issued for government employees and pensioners in Khyber Pakhtunkhwa (KP) as the provincial Finance Department has introduced a new rule regarding the release of monthly payments. Under the revised policy, salaries and pensions will no longer be issued before the 1st day of each month.
This decision comes after early disbursements at the end of October created administrative and financial complications for the provincial government.
Why the New Salary and Pension Rule Was Introduced
According to the official notification, several departments released salaries and pensions on 27th, 28th, and 29th October 2025 through the Raast system without informing the Finance Department beforehand.
Because the federal tranche had not been received during that period, the premature payments caused the Provincial Account No. 1 (Non-Food) to temporarily enter a negative balance.
To prevent similar financial disruptions in the future, the Finance Department has implemented a strict guideline:
🟢 All payments—salaries, pensions, and allowances—must be issued only on the first working day of each month.
Finance Department’s Official Notification Highlights
The notification issued by the Finance Department outlines the following key points:
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Premature disbursement of salaries created administrative challenges.
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Payments must align with Para 217 of the Federal Treasury Rules, which states:
“Bills for monthly pay and fixed allowances may be signed on the last working day of the month but shall only be payable the next working day.” -
Maintaining a positive cash balance is essential under the Memorandum of Understanding (MoU) signed by the Provincial Government, State Bank of Pakistan, and Federal Government.
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All institutions are instructed to strictly comply to avoid future complications.
What This New Rule Means for Employees and Pensioners
The updated rule ensures:
Timely and Organized Payment Process
Government payment cycles will now follow a consistent schedule without unexpected variations.
Improved Financial Management
A fixed release date helps maintain a stable provincial cash flow and prevents account disruptions.
Compliance with Treasury and Banking Regulations
Aligning with federal treasury guidelines ensures smoother coordination with financial institutions.
Departments Ordered to Ensure Full Compliance
All provincial departments, attached organizations, and institutional heads have been directed to implement this rule immediately. Any deviation from the new timeline may lead to administrative action.
The change is designed to bring stability and predictability to the financial management system of KP, ultimately benefiting both employees and the governance structure.
Why the Decision Matters
A consistent payment schedule reduces confusion for employees and pensioners, helps the government maintain transparency, and strengthens provincial financial discipline.
By enforcing payments exclusively on the 1st of each month, the KP government aims to establish a streamlined, accountable, and efficient system.