Budget 2022-23: Salaries, pension of govt employees likely to be increased

ISLAMABAD: Federal government is mulling over proposals to increase the salaries and pension of government employees and had prepared three proposals for a hike in the budget for the fiscal year 2022-23, ARY NEWS reported.

According to sources in the finance ministry, there is a plan for a five to 15 percent increase in salaries of the government employees, however, it is linked with prior approval of the International Monetary Fund (IMF).

“The ad-hoc allowance for employees in BPS-1 to BPS-19 will be hiked by 5 to 10 percent,” they said adding that for BPS-20 to 22, the salaries will be increased by 10 to 15 percent.

They further said that the pension will also be increased by 5 to 10 percent. “Pay and pension commission has not yet submitted its report and the government has directed them to submit it as soon as possible,” they said.

The sources, however, said that any increase in the perks will be linked to an approval from the IMF.

In April 2022, Federal government decided to withdraw a decision to increase salaries of the government employees announced by Prime Minister Shehbaz Sharif soon after getting elected to the slot.

Miftah Ismail denied in a message on Twitter that it was a U-turn.

Giving justification of the decision, Miftah Ismail said that since salaries of the federal government employees were raised a couple of months ago, they are not raising them again.

He, however, said that the salary issues will be considered in the next budget. “Meanwhile we raised pensions of retired government employees,” he added.