Pay and Pension Commission: Raise in salaries, pension for public sector employees proposed

ISLAMABAD: The Pay and Pension Commission, led by Nargis Sethi, has submitted its interim report before the government just ahead of the upcoming budget and recommended raise in both salaries and pension for public sector employees for the upcoming budget.

The government has decided to increase salaries in the range of 15 to 20 percent with a clear-cut purpose to reduce disparity within ministries/divisions and departments and introduction of contributory pension for new recruitments during the upcoming budget.

“Yes, the Pay and Pension Commission has submitted its interim report to the Ministry of Finance and the government has taken decision to grant a raise in salaries of public sector employees with the purpose to reduce disparity,” top official sources confirmed to The News here on Friday. Within the bureaucracy such as public sector employees working into PM and President Secretariat, NAB, FBR, and top judiciary are getting double salaries but other employees are facing acute difficulties. “The government may grant 15 to 20 percent raise depending on available resource envelop in the coming budget” said the official.

The government also intends to introduce contributory pension for new recruitments into the public sector domain of the upcoming budget but it would be a futile exercise if contributory pension related concept was announced without creation of a separate fund. The World Bank is studying for introducing contributory pension and may provide financing for establishment of a separate fund with seed money for the creation of fund.

According to an official announcement issued here on Friday, Chairperson Pay and Pension Commission Ms Nargis Sethi called on the Federal Minister for Finance and Revenue, Shaukat Tarin, at the Finance Division. The SAPM on Finance and Revenue Dr. Waqar Masood Khan and Secretary Finance Division were also present during the meeting.

The chairperson briefed the finance minister about the working of the Pay and Pension Commission to streamline the existing pay and pension structure as per the mandate of the commission. She outlined the working of sub-groups under the commission which have been assigned different tasks to identify distortions in the existing system of disbursement of pay and pensions of the government officers in federal, provincial and other allied departments and organizations.

The chairperson also apprised the finance minister about the challenges in the way of harmonization of Pay and Pension system across the country, which includes disparity in allowances, perks and other benefits as well as burgeoning expenditure of the pensions on national exchequer, which is not sustainable in the long run, she added.

In his remarks, the finance minister appreciated the efforts being made by the Pay and Pension Commission for streamlining the prevailing system of emoluments based on principles of equity, fairness and transparency. He directed to chalk out short, medium and long term plans for reformation of pay and pension system in the public sector over a period of time. There is no short term solution to this problem, he stressed. The end goal is to make the government employer of choice for the talented youth. There is an increased need to work out ranges for linking compensation with performance. This will ensure meritocracy in recruitment and result in improved service delivery in the public sector.

In his concluding remarks, the finance minister stated that there is a pressing need to rationalize the existing workforce and adhere to a performance-driven compensation system for smooth transition to e-governance. He affirmed full support and facilitation to the commission on the occasion.