ISLAMABAD: The federal government is reviewing four different proposals to increase salaries and pensions in the upcoming budget for fiscal year 2024-25.
Sources said one key recommendation is to grant a 30 percent Disparity Reduction Allowance for government employees from Grade 1 to Grade 16.
In addition, the government is considering a 10 percent increase in salaries and pensions to adjust for the rising cost of inflation.
The sources further said the budget proposals also include the merging of one out of the last two ad-hoc relief allowances into the basic salary structure.
For Grade 17 to Grade 22 employees, a 15pc salary increase has been proposed as part of a broader effort to maintain fairness across pay scales.
Furthermore, there is a recommendation to exempt the armed forces from the Contributory Pension Scheme, ensuring that their pension benefits remain unchanged under the new system.
The proposals have reportedly received backing from coalition partners, who have also advised the government to increase public sector wages to ease the financial burden on employees amid continued inflationary pressures.
The final decision on salary and pension increases will be made during a federal cabinet meeting ahead of the formal presentation of the budget.
