The federal cabinet has approved budget recommendations for the fiscal year 2023–2024, granting a significant compensation increase of up to 35% for government employees to provide respite despite rising inflation.
Govt employee salaries raised to 35%: After consulting with several parties, the choice acknowledges the struggles the economically underprivileged segments face. In addition, the administration approved raising pensions by 17.5% for the following fiscal year.
Preliminary reports state that staff in grades 1 through 16 will receive a 35% raise, while those in grades 17 and up will receive a 30% raise. Additionally, the government has suggested making the minimum wage Rs 32,000 per year.
According to the Pay and Pension Commission’s recommendations, government employees should receive 100% more in medical and transport benefits and a 10% rise in ad hoc benefits.
During the budget speech, the finance minister, Ishaq Dar, acknowledged the challenges faced by government workers and assured them that the government was taking various steps to alleviate their burden.
Dar declared that the EOBI (Employees’ Old-Age Benefits Institution) pension would rise to Rs10,000 and the minimum pension to Rs12,000.
In addition, the government intends to assist widows by forgiving their loans of up to one million rupees through the House Building Finance Corporation (HBFC). The government will increase the maximum amount individuals can deposit into a martyr’s national savings account from Rs. 5 million to Rs. 7.5 million.
Benazir Income Support Programme (BISP) funding would also increase by Rs50 billion, a total increase of Rs450 billion.
The government suggests a targeted subsidy program worth Rs 25 billion provide necessities through Utility Stores Corporation to aid the populace further.
In addition, the Finance Minister declared that working journalists and artists would receive health insurance cards, reflecting the government’s dedication to assisting many facets of society.