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Budget 2024-25: Federal govt mulling 10-15% increase in employees salaries

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Digital Desk

2 years ago

ISLAMABAD: In the upcoming budget for the financial year 2024-25, the federal government is mulling a 10-15 percent increase in the salaries of government employees, keeping in view the conditions of the IMF and the inflation, for which consultation is also going on with the provinces.

Reports suggested that the federal budget proposal also includes an increase in the pension of retired employees by 10 percent.

However, the final decision will be taken by the government after reviewing the recommendations of the Finance Ministry. If approved, the increase would take effect from July 2024.

A proposal to increase the Employees’ Old Age Benefit (EOBI) is also under consideration. Apart from this, pension reforms are also likely to be introduced to reduce the pension burden on the national exchequer.

Expected increase in salary, pension of govt employees in Budget 2024-25

Salaries and pensions of government employees are expected to rise by 10 to 15 % in the e upcoming budget FY 2-024-25. The government is considering an increase due to the high-inflation rate in the country.

Reports suggested that the federal budget proposal also includes an increase in the pension of retired employees by 10 percent.

Moreover, sources privy to the development told that the government is cutting expenses in an austerity drive to mend the broken $350 billion economy that faces a massive balance of payments crisis.

A news shared by a private news channel said the federal government is mulling to axe subsidies for government employees from grade 17 to 22.

Digital Desk