Government proposes a 20% salary increase for FY25

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The finance minister of the federal government proposed a 15-20% increase in salaries for government employees as the government rushed to finalise its budget for 2024-25, as the pace to finalise the budget accelerated.

A report from the insiders of the finance ministry has revealed that the policy of monetary compensation for the bureaucracy has been proposed to be raised from Rs40,000 to Rs60,000, and the monetary compensation for officers of Grade 20 to be raised from Rs65,000 to Rs107,000.

An increase in salaries of officers from Grade 1 to 20 by 10% would affect the national exchequer by Rs80 billion as a result of the increase in salaries of officers from Grade 1 to 20.

It was further reported by the sources that there is a demand to increase the medical allowance and the conveyance allowance by a 200% increase for employees of grades 1 to 16 in the company.

In addition, the employees of grades 1 to 16 are currently receiving a conveyance allowance of Rs1,800 and a medical allowance of Rs1,500, while those in grades 17 and 18 are receiving a conveyance allowance of Rs5,000.

Sources have also stated that there are plans to increase the conveyance allowance by 200%, according to the sources.

Sources within the ministry said that the employees of Grade 16 in 2021 and 2022 received a disparity allowance of 25% and 15% respectively. It has also been proposed by the ministry that the disparity allowance be continued in the upcoming budget as a means of eliminating the difference between the salaries of federal employees and those of provincial employees.

Additionally, the members of the committee noted that the proposals to increase salaries and allowances are still in the formative stages. After consulting with the Ministry of Finance and the cabinet, the Prime Minister Shehbaz Sharif will make the final decision on the matter.

Timenews1 provided that news.

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