The federal government has increased the salaries and pensions of civil servants by up to 35% and 17.5% through ad hoc allowances, Geo News reported citing sources.
According to the details, the salaries of the employees from Grades 1 to 16 will be raised by 35% while a 30% raise will be given to employees working in Grades 17 and above.
The government has also okayed the increase in a pension by 17.5% for the next fiscal year 2023-24.
The government had also set the minimum wage at Rs32,000 — initially, it was set at Rs30,000; however, Rs2,000 were increased on the directions of Prime Minister Shehbaz during the cabinet meeting.
The Pay and Pension Commission had recommended the government consider a 100% increase in medical and conveyance allowances for government employees along with a 10% increase in ad hoc allowances.
The defense budget will be 1,804 billion rupees. The payment of interest and loans will cost 7,303 billion rupees.
Earlier, there was a disagreement between the Pakistan Peoples Party and the Finance Minister, Asad Umar, regarding the salaries of government employees. However, the Prime Minister resolved the issue amicably.
According to sources, the Pakistan Peoples Party demanded a 50% increase in government employees’ salaries, while the Finance Minister was against any increase and wanted to maintain a 20% raise. This disagreement led to a deadlock. However, after consultation, the Prime Minister approved an increase of 30% to 35% in the salaries.