Govt Employees Likely to Get Big Increase in Their Salaries and Pensions in July

The federal government wants to increase the salaries and pensions of its employees with increments of up to 10-15 percent in the upcoming fiscal year budget.

The Ministry of Finance wants a 10 percent salary increase, but a few factors may compel it to increase salaries by up to 15 percent in the 2024-25 budget, reported TheNews.

The government is reviewing car monetization allowances of up to 25 percent for senior officers. Currently, grade 20 officers receive Rs. 67,000, grade 21 officers Rs. 77,000, and grade 22 officers Rs. 87,000 per month in car monetization handouts.

Pension reforms are also on the budget agenda, including a proposed tax on pensions exceeding Rs. 100,000 per month. Different slabs for higher pensions may be introduced. It is also possible that the next budget may extend the retirement age for public sector employees by up to five years.

Key pension reform proposals include:

  • Gross pension based on 70 percent of the average salary over the last 36 months of service.
  • Early retirement option after 25 years with a 3 percent annual penalty on the pension.
  • Separate handling of pension increases from retirement calculation until further government review.
  • Family pensions limited to 10 years, extended to 20 years for Shuhada pensions, and lifetime for disabled/special children.
  • Option to commute up to 25 percent of the gross pension at retirement.
  • Pensioners re-employed in public service can choose between pension or salary, and those entitled to multiple pensions can opt for one.


  • 10 to 15% increase in salaries and pensions is not a ‘big increase’ considering the exorbitant cost of living and uncontrolled inflation. Even the worse problem is undocumented economy. An uneducated, untrained plumber, mason, electrician, and others in similar position charge as much as, for example, a qualified doctor and that too for minor work. On top of that they are not tax filers nor is there any record of what they earn. It is unfortunate that the government forms it’s policies in a vacuum without taking into account the ground realities. The government can easy cut expenditure in several spheres but it will not because Mafias will not allow that to happen.

  • Pensions need proper treatment as pensioner have no alternative to meet growing legacy for retired employees.

  • Keeping in view the country debts double facilities e.g transport medical and house rents be withdrawn. Officers are availing official vehicle and houses and also allowances too.

  • Please give attention on rents of house too if government can’t government houses nd employees cant get houses more then 10yrs passed at least increase house rent as not increased from many yrs nd owner increase rent of houses every year……
    Please giv attention to it too.

  • The car monetization policy needs to be strictly implemented in its true spirit. According to which the aforementioned officers will either avail car monitization or will use the government vehicle as per their entitlement.It has been observed that 95% of the officers are availing both opt.The federal secretariate officers entitled for monetization are using vehicles of their attached deptts and are also recieving car monetised amount in their salaries.The Prime Minister needs to take action against all those officers who are availing botg fecilities at the same time and giving heavy loses tonational exchequer.

  • No transport allowance to grade 18 pebsioners.They fly on the shoulders of clouds,Govt thinks. Mo increase in medical allowance for decades cos Doctors are their kids hospitals their parental houses and old pensioners are getting young and energetic day by day ,why they need medicines.authorities at the helm of affairs mull.

  • It’s injustice and against equity principle that a low or middle class employee who is already living in very hard and tough circumstances is further getting burdened in shape of taxes on pensionØŒ only 10 percent increase etc.Did Govt increase inflation only 10%, petrol increase 20% in a year? Grade 20,21 who already enjoying free electricity units, kitchen, Drivers,Cooks,free Govt car,free litres of petrol on monthly basis are further extended increase in monetization of car from 67000 to 77000 and 77000 to 87000 in addition to their salary,allowances and many other emoluments.What these policy makers will answer before Allah on the day of judgement? Policy makers are from upper class so they only take in mind the benefits of their class at the cost of basic rights of lower and middle class

  • And what about conveyance allowance. It was set when petrol was 100 rupees per liter. Similarly the rent if houses have been increased manifold. A grade 17 officer can not afford a 5 Marla house or even it’s one portion in 41000. However all senior officers are getting monitization and also using govt vehicles without any fear.

  • Minimum wages 45k honi chaiye 32k me guzara nai hai meherbani kar ke minimum wages 45k Karen shukriya..


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