Federal govt notifies minimum wage for employees

ISLAMABAD: The federal government has granted special allowance/minimum increase in the wages of civil employees.

A circular issued by the Ministry of Finance said the president was pleased to enhance with effect from 1st July 2023 and till further orders, minimum wage/gross salary to all the civil employees of the federal government as well as civilians paid from defence estimates including contingent paid staff and contract employees employed against civil posts in basic pay scales on standard terms and conditions of contract employment.

Those whose gross salary is less than Rs32,000 shall be allowed the difference as a Special Allowance.

The amount of Special Allowance will be subject to Income Tax; will be admissible during leave and the entire period of LPR except during extraordinary leave; will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent; will not be admissible to the employees during the tenure of their posting/deputation abroad; and will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them had they not been posted abroad.

The Office of the Chief Commissioner, Directorate of Industries & Labour Welfare, ICT, Islamabad vide Notification No. ADLW 8(20)-ICT/2021-325 dated 31-07-2023 has already notified the rate of minimum wage at Rs32,000 per month as announced in Budget 2023-24.

The above Special Allowance/increase in minimum wage shall be accommodated from within the budgetary allocation for the year 2023-2024 by the respective ministries/ divisions/ departments and no supplementary grants would be given on this account.