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ISLAMABAD: The federal finance minister has proposed an increase of 15 per cent in the salary of government employees, including personnel of the armed forces.
In his budget speech on Friday, Finance Minister Dr Abdul Hafeez Shaikh said the government employees who retired on or after July 1, 2007, would get a raise of 15 per cent in pension and those who retired on or before June 30, 2002, would be allowed an increase of 20 per cent.
He pointed out that last year the government allowed an ad-hoc monthly allowance equal to 50 per cent of the employees’ basic pay. An increase was also made in the medical allowance and pension.
The minister said that despite severe financial constraints the government fully realised that its employees and pensioners were facing enormous difficulties in making ends meet. In order to provide some relief to them, measures were being proposed that were likely to take effect from July 1.
Mr Shaikh said that conveyance allowance was proposed to be enhanced by 25 per cent for all employees in BPS-1 to BPS-15. All the civil servants and armed forces personnel would be allowed enhanced conveyance allowance regardless of their place of duty.
He also announced ‘compulsory monetisation’ of transport facility for the federal government civil servants in BPS-20 to BPS-22.
