Share with Friends

Introduction Massive Increase in Salaries in Budget 2024-25

The upcoming Budget 2024-25 is set to include a Massive increase in salaries in Budget 2024-25 for government employees. The Ministry of Finance has shared initial proposals, hinting at a promising pay raise for federal workers.

Proposal for Massive Increase in Salaries in Budget 2024-25

General Increase: Federal employees might see a salary hike of 15 to 20 percent.
Monetization Policy:
Grade 20 Officers: Increase from Rs 65,000 to Rs 105,000
Grade 21 Officers: Increase from Rs 75,000 to Rs 120,000
Grade 22 Officers: Increase from Rs 95,000 to Rs 155,000

Financial Conditions

The International Monetary Fund (IMF) is urging cost reductions and pension reforms, which could limit the extent of salary and pension increases.

Cost Implications

10% Salary Increase: Estimated to cost around Rs 80 billion for employees across grades 1 to 22.
Allowance Increases:
Medical and Conveyance Allowances: A proposed 200% increase for grades 1 to 16. Current allowances are Rs 1,800 for conveyance and Rs 1,500 for medical.
Grades 17 and 18: Officers currently receive Rs 5,000 for conveyance, with a similar 200% increase proposed.

Addressing Salary Disparities

Disparity Allowance:
2021: 25% allowance given to grades 1 to 16.
2022: 15% allowance provided.
There is a proposal to continue this allowance to reduce salary differences between provincial and federal employees.

Decision-Making Process

All proposals are preliminary and subject to approval by the Prime Minister, in consultation with the Finance Ministry and the Cabinet.

Conclusion

The upcoming Budget 2024-25 promises a massive increase in salaries for government employees, aiming to improve their financial conditions. While the proposed salary hikes are substantial, the government must balance these increases with fiscal responsibilities and IMF recommendations. The final budget will reveal how these plans are implemented, ensuring support for employees while maintaining economic stability.

This news source : samaa tv

Related FPSC jobs Advisement