Tag: minimum wage

  • Govt announces salary and pension hike in Budget 2024-25

    Govt announces salary and pension hike in Budget 2024-25

    In a pivotal and politically charged moment, Finance Minister Muhammad Aurangzeb presented his inaugural federal budget for the fiscal year 2024-25 on Wednesday, as Pakistan endeavors to secure a crucial long-term bailout from the International Monetary Fund (IMF).

    Addressing the National Assembly, Aurangzeb underscored the government’s economic strides amidst significant financial and political hurdles over the past year. “The government’s progress on the economic front has been notable,” he affirmed in his opening statements.

    The government has proposed a raise in the minimum wage from the current Rs32,000 to Rs36,000 in a bid to mitigate the inflationary pressure on citizens. According to the finance minister, the purchasing power of the populace has been impacted by rising inflation, prompting proactive measures to tackle the issue.

    A prominent feature of the budget announcement was the federal cabinet’s endorsement of substantial salary increments for government employees. Those in Grades 1 to 16 will witness a 25 per cent salary hike, while employees in Grades 17 to 22 will experience a 20 per cent raise. Moreover, pensions for retired employees will see a 22 per cent increase.

    Reflecting on the nation’s recent economic tribulations, Aurangzeb reminisced about a period when Pakistan’s economy was in dire straits. “The State Bank’s reserves were sufficient for less than two weeks of imports, the rupee depreciated by 40 per cent, economic progress was stagnant, and inflation was propelling more people below the poverty line rapidly,” he recalled. “Emerging from this situation seemed nearly insurmountable.”

    The finance minister also lauded the previous government for securing a short-term standby agreement with the IMF, attributing it to bringing economic stability and averting uncertainty during a critical phase when the preceding IMF programmed was concluding, and negotiations for a new one were uncertain.

    As Pakistan confronts these economic challenges, the newly unveiled budget along with the associated salary and pension increments are perceived as indispensable measures to stabilize the economy and fulfill IMF expectations, thereby laying the groundwork for future growth and stability.

  • ‘Special allowance’ announced to assist workers earning below Rs32,000

    ‘Special allowance’ announced to assist workers earning below Rs32,000

    The federal government, in accordance with a notification issued by the finance division, has officially implemented a minimum monthly wage of Rs32,000. 

    The prescribed minimum wage, which is set at Rs32,000, applies to all civil employees of the federal government. 

    This also encompasses civilians who receive their remuneration from Defence estimates, including contingent paid staff and contract employees engaged for civil posts within the basic pay scales, under standard terms and conditions of contract employment.  

    Individuals whose gross monthly salary falls below the newly established minimum wage of Rs32,000 will be entitled to receive the difference as a “special allowance.” 

    It is worth noting that the government had previously announced an increase in financial compensation for individuals hired from the private sector for MP1, MP2, and MP3 positions within the bureaucracy earlier in the same month. 

    The revised minimum wage regulations will be in effect from July 1, 2023. 

  • Sindh raises factory worker salaries: Skilled workers to earn Rs33,280 monthly

    Sindh raises factory worker salaries: Skilled workers to earn Rs33,280 monthly

    The Sindh Minimum Wage Board, in a recent announcement, has officially revised the compensation rates for factory workers. Chairman Zulfiqar Ali Nizamani revealed that skilled workers in the province will now receive a minimum monthly wage of Rs33,280, while unskilled workers will be entitled to a minimum wage of Rs32,000.

    According to ARY News, Nizamani emphasised the mandatory nature of these minimum wages for factory owners, with a provision for objections to be submitted within a 14-day window. He also warned of punitive measures against those who fail to adhere to these wage standards.

    Notably, the Sindh High Court has intervened in this matter, ordering the enforcement of the minimum wage set by the Sindh government. Specifically, the court mandated that sanitary workers must receive a minimum wage of Rs25,000.

    Additionally, the labour department has been directed to gather reports from various departments to assess and oversee compliance with these wage regulations.

  • Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    In response to the ongoing challenges posed by significant inflation, the federal cabinet has granted its approval to the budget proposals for the upcoming fiscal year 2023-2024.

    As part of these measures, the salaries of government employees will be enhanced by up to 35 per cent, based on the recommendations put forth by various stakeholders. This decision aims to alleviate the hardships faced by the less privileged segments of society.

    Furthermore, the government has sanctioned a 17.5 per cent increment in pensions for the fiscal year 2023-2024. Employees falling within grades 1-16 will benefit from a salary raise of 35 per cent, whereas those in higher grades, above grade 17, will experience a 30 per cent increase in their salaries. Moreover, the government has established a minimum wage of Rs32,000.

    In addition to salary adjustments, the Pay and Pension Commission has proposed a 100 per cent rise in medical and conveyance allowances for government employees, along with a 10 per cent increase in ad hoc allowances. These recommendations are being taken into careful consideration by the government.

    The approval of the budget proposals reflects the government’s commitment to address the economic challenges faced by the country and provide relief to its citizens.