ISLAMABAD: The federal government on Friday increased the salaries and pensions of civil servants by up to 35% and 17.5% through ad hoc allowances.
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 Sharif 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.
In his budget speech today, Finance Minister Ishaq Dar said, the government is aware of the difficulties faced by government employees and keeping this in mind several steps are being taken for their relief.
Dar said that the minimum pension is being increased to Rs12,000. He also announced to increase EOBI pension to Rs10,000.
It has also been proposed that the government will pay the debts of widows up to Rs1 million through House Building Finance Corporation (HBFC) while the deposit limit in national savings accounts for martyrs is being increased from Rs 5 million to Rs7.5 million.
Likewise, the limit for Behbud Savings Certificate has also been increased from Rs 5 million to Rs7.5 million.
Similarly, the government also announced to enhance the allocation of the Benazir Income Support Programme (BISP) by Rs50 billion to Rs450 billion.
Dar said that a Rs25 billion targeted subsidy programme is being proposed to provide daily-use items through Utility Stores Corporation to the people.
Health insurance cards will be issued to working journalists and artists, the federal minister stated.