Federal govt notifies raise in salaries, pensions of employees

Islamabad: The federal government on Wednesday notified raise in salaries and pensions for employees, as proposed in the recently approved budget for Fiscal Year 2024-25.

The Finance Division announced that the adhoc relief allowance for government employees up to grade-16 has been increased by 25 percent.

For officials from grade-17 to grade-22, the adhoc relief allowance has been raised by 20 percent.

Additionally, the Finance Division notified a 15 percent raise in the pensions of federal employees.

The notification stated: “The President has sanctioned an Adhoc Relief Allowance 2024 to all federal government employees, including armed forces personnel, civil armed forces, and civil employees of the federal government, as well as civilians paid from defense estimates, including contingent paid staff and contract employees employed against civil posts on standard terms and conditions of contract appointment."

The adhoc relief allowance will be subject to income tax. Employees will receive the allowance during regular leave and pre-retirement leave but will not be eligible for it during extraordinary leave.

This allowance will not be factored into the calculation of pension, gratuity, and house rent. Furthermore, the allowance will not be provided to employees on deputation abroad. However, upon their return and reappointment to their respective departments, they would resume receiving it.