10pc raise in salaries, pension

ISLAMABAD: In its third budget presented on Friday, the government made just 10 percent increase in the salaries of government employees and pension as ad hoc relief.

Last year, the government had frozen the salaries making no increase in the salaries and pension of government employees. The minimum wage in the budget 2021-22 has been fixed at Rs20,000.

In the budget 2021-2022, the orderly allowance has been increased from Rs14,000 to Rs17,500 and integrated allowance for employees in BPS1 to 5 from Rs450 to Rs900. In the budget speech, Finance Minister Shaukat Khan Tarin said the government was cognizant of the hardship that the government employees were facing due to higher inflation. “Last year because of general austerity, we decided against increasing the salaries of government employees. Since the economy has improved somewhat, the government is proposing a grant of 10 percent ad-hoc relief allowance for all federal government employees with effect from July 1, 2021 and grant of 10 percent increase in pensions to all pensioners of the federal government with effect from I July 2021.” In order to mitigate inflationary pressures, the minimum wage is proposed to be fixed at Rs20,000.