ISLAMABAD: The federal cabinet on Friday green-lighted the budget proposals for the fiscal year 2023-2024, increasing the salaries of government employees up to 35%.
The announcement was made by Finance Minister Ishaq Dar in his budget speech today, saying the decision has been taken on the recommendations of several stakeholders amid backbreaking inflation that has caused immense difficulties for the poor segments of society.
The government has also okayed the proposal to increase the pension by 17.5% for the next fiscal year 2023-24.
It has been suggested to increase the salaries for employees of grades 1-16 by 35% while 30% for those above grade 17.
The government has also proposed setting the minimum wage to Rs32,000.
The Pay and Pension Commission had recommended the government consider a 100% increase in medical and conveyance allowances for government employees along with a 10% increase in ad hoc allowances.
Dar, in his speech, said the government is aware of the difficulties faced by government employees and keeping this in mind several steps are being taken for their relief.
Dar said that the minimum pension is being increased to Rs12,000. He also announced to increase EOBI pension to Rs10,000.
It has also be proposed that the government will pay the debts of widows up to Rs1 million through House Building Finance Corporation (HBFC) while the deposit limit in national savings accounts for martyrs is being increased from Rs 5 million to Rs7.5 million.
Likewise, the limit for Behbud Savings Certificate has also been increased from Rs 5 million to Rs7.5 million.