The federal government is actively considering salary and pension increases for its employees in the upcoming budget, according to insider sources.
Proposals under review include a 10% raise in salaries and pensions to keep pace with inflation, along with a 30% disparity allowance for employees in Grades 1 through 16. The final decision is expected to be made by Prime Minister Shehbaz Sharif at the federal cabinet meeting on June 10.
Read more: Budget 2025: Government Plans Major Cut in Solar Net Metering Rate from Rs27 to Rs10 per Unit
The government has assured lower-paid employees that salary gaps will be addressed, with commitments already made both verbally and in writing to employee representatives. There is also a plan to incorporate one of the two previous ad hoc allowances into the basic pay.
Furthermore, an extension of the exemption from the contributory pension scheme for armed forces personnel is being considered for another year.
Federal employees have demanded a 50% increase in salaries and minimum wages. In case their demands are not met, they have threatened to stage a sit-in protest outside Parliament House on June 10.
