ISLAMABAD: As the federal government accelerates efforts to finalize the budget for the fiscal year 2024-25, various reports indicate that the finance minister has proposed a substantial 15-20% hike in salaries.
Sources within the finance ministry reveal additional details of the proposed budget adjustments. Among them is a suggestion to raise the monetization policy for bureaucrats from Rs40,000 to Rs60,000, with a corresponding increase for officers up to Grade 20 from Rs65,000 to Rs105,000.
The projected 10% salary increase for officers ranging from Grade 1 to 20 is expected to impose an Rs80 billion impact on the national exchequer.
Furthermore, there is a clamor for a substantial 200% surge in medical and conveyance allowances for employees falling within Grades 1 to 16. Currently, these employees receive Rs1,800 as conveyance allowance and Rs1,500 as medical allowance, while officers in Grades 17 and 18 receive Rs5,000 as conveyance allowance.
The proposal also includes a doubling of the conveyance allowance, according to the sources.
In addition, it is noted that Grade 16 employees received a disparity allowance of 25% and 15% in 2021 and 2022, respectively. The ministry now aims to sustain this allowance in the upcoming budget to bridge the gap between provincial and federal employees.
It is emphasized that these proposals for salary and allowance increases are in the preliminary stages, with the final decision to be made by Prime Minister Shehbaz Sharif in collaboration with the Ministry of Finance and the cabinet.
