Govt Announces Up to 35% Increase in Salaries and Pensions
The federal government has announced a considerable compensation rise across all Grades in the fiscal year budget 2023-24, which is excellent news for government employees.
According to the specifications, Grades 1 to 16 would have a 35% increase in their salary as an ad hoc allowance, while Grades 17 and above will see a 30% increase. The federal cabinet has approved the decision.
Aside from pay increases, the government has approved a 17.5 percent boost in pensions, providing much-needed respite to pensioners during this period of inflation. The minimum pension amount has been raised from Rs. 10,000 to Rs. 12,000.
Similarly, the EOBI pension has been increased from Rs. 8,500 to Rs. 10,000. In addition, the minimum salary in the Islamabad Capital Territory (ICT) has been raised from Rs. 25,000 to Rs. 32,000.
The finance ministry, according to sources, has drafted three suggestions for pay and pension hikes. The initial suggestion called for a 100% increase in medical and transportation allowances, as well as a 10% increase in basic salary.
The second proposed a 25% rise in employee compensation from Grade 1 to 22 and a 15% increase in pensions.
Meanwhile, the third suggestion called for a 30% raise in compensation for staff in Grades 1 through 16, and a 20% raise for those in Grades 17 and beyond.
It also suggested a 50% increase in medical and conveyance allowances, as well as a 20% rise in pensions.
