In a major development ahead of the upcoming federal budget, the government is actively considering a significant salary and pension increase for public sector employees, with three key proposals under review.
These proposals, aimed at easing financial burdens and addressing employee grievances, will be presented in a special cabinet meeting chaired by the Prime Minister.
According to reports, one of the standout proposals includes a 30% disparity allowance for employees in grades 1 to 16, while officers from grade 17 to 22 could see a 15% raise. The move is expected to bridge longstanding salary gaps among government employees.
Another proposal on the table suggests a 10% salary and pension increase in line with rising inflation. Meanwhile, the third option involves merging one or two existing ad-hoc reliefs into the basic pay, with plans to introduce revised pay scales. Sources indicate that the ad-hoc relief granted in 2022 might also be absorbed into the basic salary structure, effectively boosting take-home pay.
The financial impact of these proposals is currently being assessed, with individual working papers prepared for cabinet review. If approved, these changes will be included in the federal budget to be presented in Parliament on June 10.
Interestingly, the government is also weighing a suggestion to exempt the armed forces from the new contributory pension scheme. Coalition partners have reportedly thrown their support behind increasing salaries to maintain stability and address employee concerns.
Insiders at the Ministry of Finance confirmed that a verbal and written agreement was previously made with marginalized government employees to reduce pay disparities. This agreement is now being cited by unions pressing the government to honor its commitments.
A high-level committee led by Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry has already met to discuss the matter. The committee reaffirmed the government's resolve to implement the agreed measures.
Meanwhile, public sector employees have demanded a 50% increase in salary and minimum wage, warning of a protest outside Parliament on June 10 if their demands aren't met.
