ISLAMABAD – Budget 2024-25 is around the corner and all eyes are on salary and pension hike as people in Pakistan are facing back-breaking inflation, rupee devaluation, and other economic woes.
The federal government is mulling several proposals to increase salaries of public sector employees’ by up to 15percent in the upcoming 2024-25 budget. Besides facing pressure from public sector for raise, the incumbent authorities must demonstrate political will by implementing stringent fiscal measures like cutting expenditures.
Expected Salary Update 2024
Sources familiar with the development told media that Ministry of Finance is planning to propose for 10percent salary increase, but it could be around 12.50-15 percent.
Another idea being considered is to raise the amount of money officers in grades 20, 21, and 22 earn from their cars by 20 to 25 percent. Currently, grade 20 officers get Rs67,000 monthly, grade 21 officers get Rs77,000, and grade 22 officers get Rs87,000. This policy hasn’t changed since it started in 2012 and is being looked at again because of inflation.
Pension Update 2024
The government alliance plans to change pension rules in the upcoming budget for 2024-25. One idea is to tax retirees who get more than Rs100,000 monthly. They might also create different tax rates for those with higher pensions.
Officials also mentioned proposals to raise the retirement age for public sector employees by two to five years and to introduce a comprehensive package of pension reforms.
Federal government employees would receive a pension calculated as 70 percent of their average salary over the last three years before they retire.
