Prime Minister Shehbaz Sharif has approved a revised financial assistance package for families of federal government employees who die in service, increasing lump-sum compensation and expanding support for housing, education, healthcare, and other welfare needs.
The Establishment Division issued the revised package on September 8, 2026, with the new provisions taking effect from August 28, 2026.
For ordinary in-service deaths, families will receive a lump sum grant ranging from Rs. 600,000 to Rs. 3 million, depending on the employee’s pay scale. The grant will be Rs. 600,000 for BS 1 to BS 4, Rs. 900,000 for BS 5 to BS 10, Rs. 1.2 million for BS 11 to BS 15, Rs. 1.5 million for BS 16 and BS 17, Rs. 2.4 million for BS 18 and BS 19, and Rs. 3 million for BS 20 and above.
For deaths resulting from security-related incidents, including encounters, bomb blasts, terrorism, riots, and watch and ward duties, compensation will range from Rs. 10 million to Rs. 20 million. Families of employees in BS 1 to BS 10 will receive Rs. 10 million, while the amount will rise to Rs. 20 million for BS 20 and above.
The package also provides compensation for deaths and disabilities resulting from accidents during official duties. Compensation will range from Rs. 3 million to Rs. 7 million, while permanent disability will qualify for Rs. 3 million, temporary disability Rs. 1 million, serious injuries Rs. 200,000 and minor injuries Rs. 100,000 in specified security-related cases.
Families of employees declared martyrs will continue to receive full pay and allowances, including increments and future relief, until the deceased employee reaches retirement age. They will subsequently receive a full pension under applicable rules. Families of employees who die in ordinary in-service cases will receive a 100 percent pension based on service and last pay, subject to a minimum calculation of 10 years of service.
The revised package also allows families to retain government or hired accommodation until the employee’s retirement age or for at least five years, whichever is later. Families without official or rented accommodation will receive house rent allowance according to the deceased employee’s grade.
Children of deceased employees will be entitled to free education up to graduation in public institutions, while children of martyrs will receive government-funded education up to the postgraduate level.
For ordinary in-service deaths, families will get Rs. 2 million to Rs. 7 million in lieu of a residential plot, depending on the employee’s grade. Martyrs’ families will get Rs. 13.5 million to Rs. 50 million for house purchases, plus monthly house and transport allowances and a vehicle or cash equivalent for eligible BS 16 and above cases.
The package also includes an Rs. 800,000 marriage grant, free healthcare, waiver of unpaid housing and vehicle advances, provident fund, benevolent fund and group insurance benefits. A widow, widower, son or daughter of an employee who dies in a security-related incident may also be appointed to a BS 1 to BS 15 post without advertisement.
Each ministry and department has been directed to nominate a BS 17 or BS 18 officer to ensure that all benefits are provided within one month. The revised package will replace previous assistance and Shuhada packages.
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