Govt Notifies Increase in Pension and Minimum Wage

The government has notified a 10 percent increase in pension of federal government pensioners and an increase in the minimum wage to Rs.25,000 with effect from April 1, 2022, which was announced by Prime Minister Shahbaz Sharif after taking the oath of office.

The Finance Ministry issued Office Memorandum on Thursday that until further orders an increase in pension will be admissible to all civil pensioners of the federal government including civilians paid from defense estimates as well as retired armed forces personnel and civil armed forces personnel.

The increase will also be admissible on a family pension granted under the pension-cum-gratuity Scheme, 1954, liberalized pension rules, 1977 on pension sanctioned under the central civil services (extraordinary pension) rules as well as on the compassionate allowance.

The Office Memorandum further stated that if the gross pension sanctioned by the federal government is shared with any government in accordance with the rules laid down in Part-IV of Appendix-III to the Accounts Code Volume-I, the amount of the increase In pension will be apportioned between the federal government and the other government concerned on a proportionate basis. The increase in pension will not be admissible on a special additional pension allowed in lieu of pre-retirement orderly allowance and monetized value of a driver or an orderly.

The benefit of an increase in pension sanctioned in this office memorandum will also be admissible to those civil pensioners of the federal government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15-08-1947 and are not entitled to, or are not in receipt of pension increase under the British government’s Pension (Increase) Acts. The payment will be made at the applicable rate of exchange, the notification concluded.

Meanwhile, the President of Pakistan has also sanctioned from April 1, 2022, and till further orders, a minimum gross salary at the rate of Rs. 25,000 to all the civil employees of the federal government as well as the civilians paid from defense estimates including contingent paid staff and contract employees against civil posts in the basic pay scale on standard terms and conditions of contract appointment.