Budget 2024-25: What is the proposed salary increase for government employees this year?

ISLAMABAD: With the impending Budget 2024–25, all eyes will be on the salary and pension increases, given the crippling inflation, depreciating rupee, and other economic challenges that Pakistanis are currently facing.

In the upcoming 2024–25 budget, the federal government is considering a number of proposals to raise public sector employees’ pay by up to 15%. In addition to dealing with demands for raises from the public sector, the current administration needs to show political resolve by enacting strict budgetary measures like spending reductions.

Expected Salary Update 2024

Media were informed by sources with knowledge of the development that the Ministry of Finance intends to propose a 10 percent salary increase, though the actual amount may be between 12 and 15 percent.

An additional proposal under consideration is to increase the earnings from automobiles owned by officers in grades 20, 21, and 22 by 20 to 25 percent. As of right now, grade 20 officers make Rs. 67,000, grade 21 officers make Rs. 77,000, and grade 22 officers make Rs. 87,000 per month. This policy is being reexamined due to inflation; it has not been altered since it was implemented in 2012.

Pension Update 2024

The government coalition intends to amend the pension laws in the 2024–2025 budget. Taxing retirees who receive more than Rs 100,000 per month is one idea. Additionally, they might establish various tax rates for individuals with larger pensions.

Additionally, proposals to implement a comprehensive package of pension reforms and raise the retirement age for public sector employees by two to five years were mentioned by officials.

Employees of the federal government would be eligible for a pension that is equal to 70% of their average salary for the final three years prior to retirement.