Pension, salary of govt employees likely to rise in Budget 2024-25: Details inside

ISLAMABAD: The federal government is considering different proposals including salary increases of 10 to 15 percent for government employees in the upcoming budget for 2024-25.

The government is mulling over the options to fix the FBR tax revenue target of over Rs12.5 trillion in the coming budget. According to the reports, the Ministry of Finance extended a suggestion to raise the salary by just 10 percent.

Sources within the finance ministry said that the government is all set to introduce pension reforms in the next budget for 2024-25. The proposal considers imposing a tax on pensioners who are drawing pensions of over Rs100,000 per month.

“We may propose to increase the age limit of public sector employees by two or five years along with a comprehensive package for pension reforms in the next budget for 2024-25,” a local publication said quoting top official sources.

READ MORE: Federal govt approves Triple Salary Bonus for THESE employees

The increase in pension will be granted on the pension calculated at the time of retirement. A government employee may opt for early retirement after putting in 25 years of service; however, the employee might be liable to a penalty of a 3 percent per year reduction in gross pension with effect from the retiring year till the age of superannuation.

Expected salary, pension increase in Budget 2024-25

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

A family pension, after the death or disentitlement of the spouse, might only be admissible to remaining entitled family members for a maximum period of 10 years.

In the case of Shuhada Pension, the maximum period for entitled family members may be provided for 20 years after the death or dis-entitlement of spouse; Provided further that in case of disabled/Special Children of a pensioner, the Family Pension might remain admissible for life of such children.