Tag: salary increase

  • 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.

  • President Alvi ko chahiye mazeed salary

    President Alvi ko chahiye mazeed salary

    President Dr Arif Alvi is seeking an increase in his salary. Official documents show that the president has asked for two raises, first with effect from July 1, 2021 and second with effect from July 1, 2023, as per Geo News.

    Currently, the president draws a monthly salary of Rs 846,550 and wants a two-step raise to Rs 1,024,325 and Rs 1,229,190 per month with effect from July 2021 and July 2023 respectively.

    In a letter written to the Secretary Cabinet through his Military Secretary earlier this month, the President’s Secretariat has desired amendment in the Fourth Schedule of President’s Salary Allowances and Privileges (Amendment) Act, 2018 to allow the president’s salary, a) Rs 1,024,325 per month with effect from July 1, 2021, and b) Rs 1,229,190 per month with effect from July 1, 2023.

    The letter stated, “In Pursuance of para 3(2) of President’s Salary, Allowances and Privileges (Amendment) Act 2018, published in the Gazette Notification (Part I), the remuneration of the President shall be a symbolic one rupee higher than the salary of any holder of Public Office in relation to affairs of the Federation. Accordingly, pay of the honorable President was fixed at Rs 846,550/- per month in 2018 as reflected in the Fourth Schedule of the Act ibid.”

    The letter further pointed out that the salary of the Chief Justice of Pakistan being a holder of Public Office was increased twice in the last 2 years through Presidential Orders. Pay of Chief Justice of Pakistan was fixed at Rs 1,024,324/ per month w.e.f 01 July 2021 and subsequently at Rs 1,229,189/ per month w.e.f. 01 July 2023. As per the rules, the salary of the President was not enhanced in relation to the laid down principle of one rupee higher than the salary of any holder of public office i.e. Chief Justice of Pakistan.

    On the basis of the above, the Presidency sought changes in the Fourth Schedule of President’s Salary Allowances and Privileges (Amendment) Act 2018 accordingly.

    The Cabinet Division referred the case to the Law Ministry, which on August 18 advised the former to process the case for a raise in Alvi’s salary.

    The Law Ministry stated, “The Federal Government by virtue of section 3(2) of the same Act has the power to amend that Schedule by way of a notification in the official gazette henceforth in relation to the issue at hand the Federal Government is competent to amend the Fourth Schedule by way of gazette notification and no amendment in the Fourth Schedule is required via an amending Act to effectuate a revision in the salary of the President.”

    The matter was also referred to the Finance Division, which on August 22 also supported the proposed increase in the salary of the president through amendment in the Fourth Schedule of the President (Salary, Allowances & Privileges) Act, 1975.

    The matter is expected to be presented before the cabinet for approval. The president, besides getting the desired increases, will also get a hefty amount as arrears as the two-step raises will be allowed with effect from July 2021 and July 2023 respectively.

  • 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.