The federal government has announced a 15% and 5% increase in salaries and pensions for all government employees, effective July 1, after incorporating five ad hoc allowances into the basic pay scales since 2016.
According to the notification issued by the finance ministry on Friday, there is an increase in the minimum and maximum wages of the employees, the annual increment has also been increased.
As per the notification, five ad hoc allowances and reliefs of 10% of the current basic pay were also amalgamated with the salary and frozen at the level of admissibility as of July 1, 2022.
Resultantly, the minimum salary of a grade-1 government employee will be Rs13, 550 and the maximum salary will be Rs26,450. The minimum salary of grade-17 employees has been increased to Rs45,070 while the maximum pay will be Rs113,470.
Similarly, the minimum salary of grade-21 employees will be Rs113,790 and the maximum salary will be Rs217,670. The minimum salary of a grade-22 employee will be Rs122,190 and the maximum salary will be Rs244,130.
The notification further stated that pensions had previously been increased by 10% on April 1, 2022, and now a 5% increase has been announced, adding that retired officials from both the armed forces and the civil armed forces will be eligible for the pension rise.
Moreover, the decision applied to officials who will retire after July 1, 2022.
However, special allowances, house rent allowances, and other benefits equal to the basic pay of all ministries and divisions, including the court, have been blocked until 30 June 2022.
Increase in salaries and pensions by the government may not be in accordance with the tsunami of inflation the country is experiencing. Transport charges have secured a major proportion of salaries and increase in prices of all other things may not be adjusted even with the increased salaries. On the other hand, increased taxes on salaried class might compensate the increase in salaries. However, there is a hope towards betterment as soon as Pakistan receives the IMF loan.