The federal government has notified a 15% and 5% increase respectively in wages and pensions for all civil service employees from July 1.
A notification issued Friday by the Ministry of Finance said the increase took effect from July 1. In addition to the increase in the minimum and maximum salaries of employees, the annual increase has also been increased.
A 15% increase in the salaries of state employees will be applied to the 2017 base salary. Beyond that, ad hoc allowances will be merged with this amount.
Thus, employees retiring from July 1 will benefit from it in the form of pensions.
“An ad-hoc relief allowance-2022 @ 15% of the current BPS-2017 base salary will be provided to federal civilian employees as well as civilians paid on defense estimates, including contingent paid personnel and contract employees employed against civilian positions in the base pay scales on the standard terms and conditions of contract appointment effective 01-07-2022 and will remain frozen at the same level until further orders,” reads the notification.
The one-time allowance will be subject to income tax.
Last month, the federal government, in unveiling the budget for 2022-2023, announced a 15% increase in the salaries of state employees, as well as a 5% increase in pensions for retirees.
According to the notification of the increase, a copy of which is available from L’Express Tribune, five allowances and one-time reductions of 10 percent since 2016 have also been merged with the basic salary grid and frozen at the level of its eligibility as the 1st July 2022.
Accordingly, the minimum salary for a Grade 1 government employee will be Rs13,550 and the maximum salary will be Rs26,450. The minimum salary for Grade 17 employees has been increased to Rs45,070 while the maximum salary will be Rs113,470.
Similarly, the minimum salary for a Grade 21 employee will be Rs113,790 and the maximum salary will be Rs217,670. The minimum salary for a Grade 22 employee will be Rs122,190 and the maximum salary will be Rs244,130 .
The notification further stated that previously, on April 1, 2022, pensions had been increased by 10%, and now a 5% increase was announced, adding that retired civil servants of the armed forces as well as the civilian armed forces would also be entitled rising pensions.
In addition, the decision also covered civil servants retiring after July 1, 2022.
Similarly, an ad hoc allowance of fifteen percent will also apply to contract employees and casual employees.
Meanwhile, special allowances, housing allowance and other allowances equal to base salary for employees of all ministries and divisions, including the judiciary, have been frozen at the level of June 30, 2022.