Govt to Increase Salary and Pension of Its Employees in Budget

The federal government is evaluating four different proposals for salary increments in the upcoming budget, with final decisions expected in a cabinet meeting ahead of budget day, Finance Ministry sources told ProPakistani. Among the key proposals under consideration is a 30 percent disparity allowance for government employees in Grades 1 to 16. A separate proposal calls for a 10 percent increase in both salaries and pensions to help offset the impact of inflation. Sources said the government is considering merging one of the previous two ad hoc allowances into basic salaries to simplify the pay structure. Another proposal includes a 15 percent increase in disparity allowance across the board, for both lower-grade employees (Grades 1–16) and higher-grade officers (Grades 17–22). It has also been proposed that armed forces personnel be exempted from the newly introduced contributory pension scheme. Government allies have urged the Finance Ministry to approve meaningful salary increases in the budget to ease the burden on public servants amid rising living costs, sources added. All proposals remain under review, and the final decision will be made during the upcoming cabinet meeting before the federal budget is presented.