Government (Retd) employees’ pension to increase from June 2024: Details inside

ISLAMABAD: The federal government is mulling to increase pensions of government retired employees in the upcoming budget for fiscal year 2024-25 in June amid multiple economic challenges.

As the Shehbaz-led government is ready to present its first budget, government employees eagerly wait for the announcement as their salaries increase, considering various factors, including inflation. Every year, both federal and provincial governments announce increments in pensions of their employees in their budget.

According to the details, the budget preparation for the FY 2024-25 will be started from the first week of May 2024 at the Federal Board of Revenue (FBR). Prime Minister Shehbaz Sharif had constituted an 11-member ministerial committee under the leadership of Finance Minister Muhammad Aurangzeb to deliberate proposals for budget FY 2024-25.

READ MORE: Government employees’ salary to increase from June 2024: Details inside

The Finance Division has received budget proposals on the protection of domestic industry, tariff rationalization, and industrial promotion.

According to the sources, to decrease inflation, the government is aiming to bring it down to the target range of 5 to 7 percent by September 2025. The revenue collection target of the FBR for the FY 2024-25 is likely to be fixed at Rs10.952 trillion, it added.

Expected increase in salaries, pensions of govt employees

The governments are anticipated to declare a ten percent increase in employees’ salaries and pensions in the upcoming budget year 2024–2025. The governments will, however, make the final decision after considering the Ministry of Finance’s suggestions.

If the proposal is approved, the increase will take effect in July 2024.