ISLAMABAD: The federal government has increased the minimum monthly salary of private sector employees from 32,000 to 36,000 in the budget 2024-25.
Federal Finance Minister Muhammad Aurangzeb said in the budget speech said government has also increased the salaries of government employees in the budget.
According to the budget document, in order to improve the purchasing power of civil servants from grades 1 to 16, the salaries are being increased by 25 percent, while the salaries of officers from grades 17 to 22 are being increased by 22 percent.
It is proposed to increase the pension of retired employees by 22 percent.
Meanwhile, government introduced the scheme in the budget for the financial year 2024-25 to bring down the pension expenditure.
The Federal Finance Minister said in the budget speech in the National Assembly that the federal government has an unfunded pension liability of trillions of rupees and the pension expenses are increasing rapidly. Therefore, the rate of increase in these costs needs to be reduced.
The Finance Minister said that the government has formulated a strategy for the reform of this sector on which the consultation has been completed to a large extent.
He said that according to international standards, reforms will be brought in the existing pension scheme, which will result in substantial reduction in the pension liability for the next three decades.
The finance minister added that a contributory pension scheme will be introduced for new employees in which the government's share will be paid every month. This will ensure that future employees' pensions are fully funded from the start of their employment.
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The Finance Minister said that a pension fund will be established to manage pension liabilities.
