In a move to provide relief to public servants and pensioners, the Government of Pakistan has announced substantial increases in salaries and pensions for the fiscal year 2024-25. This decision aims to address the financial pressures faced by government employees amid rising inflation and economic challenges.
Contents
- 1 Salary Increase:
- 2 Pension Increase:
- 3 Minimum Wage:
- 4 Ad hoc Relief Allowance-2024 (ARA):
- 5 FAQs
- 5.0.1 Q1. When will the salary and pension increases take effect?
- 5.0.2 Q2. Who will benefit from the salary increase?
- 5.0.3 Q3. Is the pension increase applicable to all pensioners?
- 5.0.4 Q4. What is the new minimum wage?
- 5.0.5 Q5. Will the Ad hoc Relief Allowance be included in pension calculations?
- 5.0.6 Q6. Are there any tax implications on the salary increase?
Salary Increase:
- Government employees in Basic Pay Scales (BPS) 1 to 16 will receive a 25% increase in their salaries.
- Employees in BPS 17 to 22 will receive a 20% increase.
| Govt Employees Grade | Percent Increase |
|---|---|
| Up to 16 | 25% |
| 17 to 22 | 20% |
Pension Increase:
- A 15% increase in pensions for all civil pensioners, including retired armed forces personnel and civil armed forces.
- This increase excludes special additional pensions and monetized allowances.
Minimum Wage:
The minimum wage has been raised from Rs. 32,000 to Rs. 37,000 per month.
Ad hoc Relief Allowance-2024 (ARA):
- A 25% increase on the running basic pay for employees in BPS 1 to 16.
- A 20% increase for employees in BPS 17 to 22.
These measures are set to be effective from July 1, 2024. The government’s goal is to alleviate financial strain and enhance the purchasing power of its workforce, which is expected to stimulate economic activity through increased consumer spending​.
FAQs
Q1. When will the salary and pension increases take effect?
- The increases will be effective from July 1, 2024.
Q2. Who will benefit from the salary increase?
- All government employees in BPS 1 to 22 will benefit, with specific increases of 25% for BPS 1 to 16 and 20% for BPS 17 to 22.
Q3. Is the pension increase applicable to all pensioners?
- Yes, the 15% increase is applicable to all civil pensioners, including retired armed forces and civil armed forces personnel.
Q4. What is the new minimum wage?
- The new minimum wage is Rs. 37,000 per month.
Q5. Will the Ad hoc Relief Allowance be included in pension calculations?
- No, the Ad hoc Relief Allowance will not be included in pension or gratuity calculations.
Q6. Are there any tax implications on the salary increase?
- The Ad hoc Relief Allowance is subject to income tax and applicable during all types of leave except extraordinary leave.
By implementing these measures, the government aims to support its employees and pensioners, ensuring they have better financial stability amid economic uncertainties.