Govt to Review Pay & Pension of All Departments Before Budget Announcement

The federal government has instituted a “Pay and Pension Commission” tasked with evaluating salary structures of employees of both federal and provincial governments including the armed forces.

A 6-member commission, headed by former finance secretary Abdul Wajid Rana, has been constituted to end the disparity between salaries of employees of the same grades in different departments and to review the need for a further increase in salaries.

Apart from the Chairman Abdul Wajid Rana, these are the remaining members of the commission:

1. Mr. Nazar Hussain Mahar, Retired Civil Servant
2. Dr. Noor Alam, Retired Civil Servant
3. Ms. Seema Kamil, President, United Bank Limited, Karachi
4. Mr. Zubyr Soomro, Chairman, Board of Directors, National Bank of Pakistan.
5. Ms. Nausheen Ahmed, Company Secretary, ICI (Pakistan) Limited

Besides the 6 members of the commission appointed by the federal government, 12 ex-officio members will be giving their input to the commission, ensuring the representation of all provinces.

According to the official notification, the Pay and Pension Commission will evaluate the salary structures of the following :

• Federal and provincial civil servants
• Government servants
• Civilians paid from defense estimates
• All armed forces/civil armed forces
• Personnel and holders of the posts in Management Scales
• Employees of public sector corporations/autonomous/semi-autonomous bodies, other than banks and DFIs

The Pay and Pension Commission will not evaluate the pay scales of the employees:

• Working in public sector corporations/autonomous/semi-autonomous bodies regulated by the pay scales of these organizations
• Serving in organizations regulated by the Industrial Relations Ordinance 1969
• Whose financial terms of service are settled through Collective Bargaining Agents

Moreover, the commission will evaluate the pension scheme and suggest measures to end anomalies from the existing schemes. The commission will also recommend a sustainable system for pension funds in line with international standards.

The Pay and Pension Commission will furnish its suggestions and recommendations to the federal government before the budget announcement of the next financial year.

Attached below is the detailed notification containing the TORs.