Tag: pension

  • 17.5% increase in pension announced for federal govt retirees

    17.5% increase in pension announced for federal govt retirees

    The government has issued a notification announcing a 17.5 per cent increase in the pension for federal government pensioners. The increase, sanctioned by the President, will be effective from 18th July 2023 until further orders. It applies to all civil pensioners of the federal government, including civilians paid from Defence Estimates, as well as retired armed forces personnel and civil armed forces personnel.

    The 17.5 per cent increase in pension will also be applicable to pensioners who retire on or after 1st July 2023. To determine the eligibility for the increase in pension as sanctioned in this notification, “Net Pension” refers to the pension being drawn minus the Medical Allowance.

    In addition, the increase will be granted to family pensioners under the Pension-cum-Gratuity Scheme of 1954, the Liberalized Pension Rules of 1977, pensions sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules, as well as the Compassionate Allowance under CSR-353.

    If the gross pension sanctioned by the federal government is shared with another government in accordance with the rules stated in Part-IV of Appendix-III to the Accounts Code, Volume-I, the increase in pension will be divided proportionately between the federal government and the other government concerned.

    However, the increase in pension as sanctioned in this notification will not be applicable to the special additional pension granted in place of pre-retirement orderly allowance and the monetized value of a driver or an orderly.

  • 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.

  • Pakistan Railways paying Rs35 billion pension to unverified employees annually

    Pakistan Railways paying Rs35 billion pension to unverified employees annually

    About 115,000 Pakistan Railways (PR) retired employees who have not been verified have been receiving annual pensions totaling Rs35 billion, according to research by the government-funded Pakistan Institute of Development Economics (PIDE), a think tank housed within the Planning Commission.

    It revealed in a statement yesterday that between 2015 and 2020, Pakistan Railways lost Rs144 billion. A deficit of Rs44 billion in 2020, which includes Rs36 billion for the pensions of 120,000 PR employees, is included in the losses, according to Dawn.

    According to the PIDE report, the PR also received a subsidy from the government in 2020 worth Rs45 billion to make up for these losses.

    Due to the intense competition from the road transportation industry and PR’s inability to implement a customer-centric business strategy due to a complicated bureaucratic structure, the public agency has been inefficient, underfunded, and overstaffed for the past 35 years, making losses.

    The study also noted that 115,000 unverified PR retirees receive an annual pension of Rs35 billion. To solve the problem, a biometric verification system to confirm the pensioners in question has been proposed.

    A Pay and Pension Commission (PPC) has also been established in this respect, and it will take into account issues pertaining to the railways and other public organizations.

  • Labourers demand increase in monthly wages, pensions

    Labourers demand increase in monthly wages, pensions

    On May 15, the provincial president of the Muttahida Labour Federation (MLF) in Peshawar, Muhammad Iqbal stated that the current price hikes had made life difficult for poor workers but the government had remained silent.

    He remarked that the provincial and federal governments should enhance monthly wages and the Employees’ Old-Age Benefit Institution pension in relation to the country’s current price hikes and inflation, speaking during a protest gathering staged in honour of May Day here at Shobra Chowk.

    The leader was of the view that workers had played a critical part in the country’s progress, but that each subsequent government had crushed them under one excuse or another. He claimed that the government and investors had teamed up to close down industrial units in the province as part of a well-planned plot.

    Read more: Pakistan’s textile exports surge by 30 per cent

    Iqbal said that the authorities should take measures to protect the rights of lower-paid strata and labourers in order to ease their lives.