Budget 2024-25 is around the corner and all eyes are on salary and pension hike as people in Pakistan are facing back-breaking inflation, rupee devaluation, and other economic woes.
The federal government is considering several proposals to increase public sector employees' salaries by up to 15 percent in the forthcoming 2024-25 budget. In addition to pressure from public sector employees for a raise, the current authorities must also show political resolve by implementing strict fiscal measures, such as reducing expenditures.
Expected Salary Update 2024
Sources familiar with the development told media that Ministry of Finance is planning to propose for 10percent salary increase, but it could be around 12.50-15 percent.
Another proposal being considered is to increase the car monetization for officers in grades 20, 21, and 22 by 20 to 25 percent. Currently, grade 20 officers receive Rs67,000 per month, grade 21 officers receive Rs77,000, and grade 22 officers receive Rs87,000. This policy, which has remained unchanged since its introduction in 2012, is now being reviewed due to inflationary pressures.
Pension Update 2024
The alliance government is preparing to introduce pension reforms in 2024-25 budget. One proposal includes taxing pensioners who receive over Rs100,000 per month, with different tax slabs for higher-income pensioners potentially being introduced.
Officials have also discussed proposals to increase the retirement age for public sector employees by two to five years and to implement a comprehensive package of pension reforms.
Under the proposed changes, federal government employees would be eligible for a gross pension amounting to 70 percent of the average pensionable emoluments earned during their final three years of service before retirement.
