The fiscal year budget 2023-24 brings good news for government employees as the federal government has announced a significant salary increase across all Grades.
According to the details, Grades 1 to 16 will witness a 35 percent hike, as ad-hoc allowance, in their salaries, while Grades 17 and above will receive a 30 percent raise. The decision has been approved by the federal cabinet.
In addition to salary increments, the government has also announced a 17.5 percent increase in pensions, giving much-needed relief to retirees during this inflation. The minimum amount of pension has been increased from Rs. 10,000 to Rs. 12,000.
Likewise, EOBI’s pension has been raised from Rs. 8,500 to Rs. 10,000. Moreover, the minimum wage in Islamabad Capital Territory (ICT) has also been increased from Rs. 25,000 to Rs. 32,000.
As per the reports, the finance ministry had prepared three recommendations for salary and pension increases. Under the first recommendation, a 100 percent increase in medical and conveyance allowance and a 10 percent basic pay raise were proposed.
The second one recommended a 25 percent increase in salaries of employees from Grade 1 to 22 and 15 percent raise in pensions.
Meanwhile, the third recommendation proposed a 30 percent increase in salaries of employees from Grade 1 to 16 and a 20 percent increase for Grade 17 and above.
In addition, it also recommended a 50 percent increase in medical and conveyance allowance, along with 20 percent raise in pensions.