Wednesday June 19, 2024

Budget FY25: Govt proposes '20% hike' in salaries

Proposals to increase salaries and allowances are in initial stages, say sources within finance ministry

By Ashraf Malkham
June 05, 2024
An employee counts Pakistani rupee notes at a bank in Peshawar, on August 22, 2023. — Reuters
An employee counts Pakistani rupee notes at a bank in Peshawar, on August 22, 2023. — Reuters

ISLAMABAD: As the federal government ramped up the pace to finalise the budget 2024-25, the finance minister proposed a 15-20% hike in the salaries, Geo News reported citing sources.

According to the insiders of the finance ministry, an increase in the monetisation policy of the bureaucracy from Rs40,000 to Rs60,000 has been proposed while the monetisation for officers up to Grade 20 is proposed to be increased from Rs65,000 to Rs105,000.

They said that the increase of 10% in salaries of officers from Grade 1 to 20 will have an impact of Rs80 billion on the national exchequer.

The sources further said that there is a demand for a 200% increase in medical and conveyance allowance for employees of grades 1 to 16.

Moreover, the employees of Grade 1 to Grade 16 scale are currently getting Rs1,800 conveyance allowance and Rs1,500 medical allowance while Grade 17 and 18 officers are getting Rs5,000 conveyance allowance.

There is also a proposal for a 200% increase in conveyance allowance, added the sources.

The ministry sources said that the employees of Grade 16 got a disparity allowance of 25% and 15% in 2021 and 2022. In the upcoming budget, the ministry has also proposed to continue the disparity allowance to end the difference between provincial and federal employees.

They further noted that the proposals to increase the salaries and allowances are in the initial stages. The final decision will be taken by Prime Minister Shehbaz Sharif in consultation with the Ministry of Finance and the cabinet.