Significant increase in govt employees’ salaries approved for FY2023-24

Islamabad:  Good news for the government employees as the federal government on Friday okayed significant increase in their salaries for the fiscal year 2023-2024.

 The decision comes in response to rising inflation and the hardships faced by the marginalized sections of society.

According to the details, the salaries for employees in grades 1-16 increased by 35%, while those above grade 17 will receive a 30% raise. Furthermore, a 17.5% increase in pensions for the next fiscal year was also okayed.

To address the financial challenges faced by government employees, the Pay and Pension Commission recommended a 100% hike in medical and conveyance allowances, along with a 10% increase in ad hoc allowances. Finance Minister Ishaq Dar, in his budget speech, acknowledged the government's awareness of the difficulties faced by government employees and emphasized the measures being taken for their relief.

To provide further relief to the public, a targeted subsidy program of Rs25 billion has been approved. This program aims to offer essential daily-use items through Utility Stores Corporation. Furthermore, working journalists and artists will be issued health insurance cards as part of the government's efforts to support these vital professions.

The minimum wage has been set at Rs32,000, providing better livelihoods for low-income workers. Additionally, the minimum pension will be raised to Rs12,000, and the pension for the Employees' Old-Age Benefits Institution (EOBI) will be increased to Rs10,000.

In a move to support widows, the government plans to pay their debts of up to Rs1 million through the House Building Finance Corporation (HBFC). Moreover, the deposit limit for national savings accounts for martyrs will be raised from Rs5 million to Rs7.5 million. The allocation for the Benazir Income Support Programme (BISP) will also be enhanced by Rs50 billion, bringing it to a total of Rs450 billion.