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: