Pension enhanced by 17.5% ; Minimum wages set at Rs30,000/month
Minutes after Prime Minister Shehbaz Sharif addressed the federal cabinet and gave an impassioned speech about the impact of inflation on the masses, especially the salaried class, the cabinet approved a 30% increase in salaries of government employees. It has also proposed raising minimum wage to Rs30,000 per month.
Sources say that the participants have okayed the proposal of 30pc to 35pc hike in salaries of government employees.
Dar also announced 17.5 percent enhancement in the pensions of the Federal Government employees, realizing their financial hardships due to the increased inflation.
Presenting the Federal Budget for the fiscal year 2023-24, the minister said the government had decided to give 35 percent ad-hoc relief in the salaries of employees from Grade1-16 and 30 percent to Grade-17-22 employees aimed at increasing their purchase power.
In his speech, Dar 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.
He said it had been proposed to increase the minimum wage to Rs32,000 for Islamabad Capital Territories.
Dar said that the minimum pension is being increased to Rs12,000. He also proposed to increase the Employees’ Old-Age Benefits Institution pension to Rs10,000.
It has also been proposed that the government will pay the debts of widows up to Rs 1 million through House Building Finance Corporation while the deposit limit in national savings accounts for martyrs is being increased from Rs5 million to Rs7.5 million.
The finance minister said that the Behbood Savings Certificate deposit has been proposed to increase to Rs7.5 million from Rs5 million.
Earlier in the day, the prime minister addressed a meeting of the federal cabinet prior to the presentation of the budget for the financial year 2024 and said that at a time when people are reeling from inflation, salaries of the workforce should be increased. At the same time, pensions should also be raised.
Elaborating on the impact inflation has had on the country and the salaried class, the PM said,
