I’m providing details here on the increase in salaries for Federal Government employees as announced in the 2023-24 Federal Budget by the finance ministry of Pakistan (01). The budget was announced by the Federal Government on 9th June 2023, and it includes a substantial pay raise for its employees.
Federal Government of Pakistan Budget Overview 2023-24
| Resources/Expenditure Items | Amount (Rs. in Billion) |
|---|---|
| TOTAL RESOURCES (I to V) | 14,460 |
| FBR – Federal Consolidated Fund | 9,200 |
| Non-Tax Revenue | 2,963 |
| a) Gross Revenue Receipts | 12,163 |
| b) Less Provincial Share | 5,276 |
| I. Net Revenue Receipts (a-b) | 6,887 |
| II. Non-Bank Borrowing (NSSs & Others) – Public Account | 1,906 |
| III. Net External Receipts – Fed. Consolidated Fund | 2,527 |
| IV. Bank Borrowing (T-Bills, PIBs, Sukuk) – Fed. Consolidated Fund | 3,124 |
| V. Privatization Proceeds – Fed. Consolidated Fund | 15 |
| Total (II+III+IV+V) | 7,572 |
| TOTAL EXPENDITURE (A+B) | 14,460 |
| A. Current | 13,320 |
| Interest Payments | 7,303 |
| Pension | 761 |
| Defence Affairs & Services | 1,804 |
| Grants and Transfers to Provinces & Others | 1,464 |
| Subsidies | 1,074 |
| Running of Civil Govt | 714 |
| Provision for Emergency and others | 200 |
| B. Development | 1,140 |
| Federal PSDP | 950 |
| Net Lending | 190 |
This table summarizes the allocation of resources and expenditures in the Federal Budget for the fiscal year 2023-24.
Enhancement / Increase the Salaries as per Budget Speech Copy 2023-24 Federal
As per the budget speech copy the following has been announced/granted to the employees:
- Adhoc Relief Allowance 2023 @ 35% for BPS-01 to BPS-17 and @ 30% BPS-17 to BPS-22
- Increase in pension @ 17.5% for all pensioners
- Minimum Pension per month was raised from Rs. 10,000/- to Rs. 12,000/-
- Minimum Wage Rates in the limits of ICT Increased from Rs. 25,000/- per month to Rs. 30,000/- per month
- EOIB Pension enhanced from Rs. 8500/- to Rs. 10000/-
- House Building Finance Corporation widows loan waived off remaining upto 10 lac amount
- CDNS martyrs deposit limits increased from 5 million to 7.5 million
- Behbood Saving Certificates limits also increased from 5 million to 7.5 million
- Increase in TA/DA Rates @ 50%
- Increase in Deputation Allowance, Current Charge, and Additional Charge Allowance 12000/- to 18000/-
- Enhancement in Orderly Allowance Rs. 17500/- to 25,000/-
- Special Conveyance Allowance for Disabled @ 100% from 2000 PM to 4000 PM
- Driver Allowance for Majaz Pensioners
Demands of Employees before Budget 2203-24
Every year, all government employees expected a pay rise. However, this year, all employees seek increases in not just their pay, but also in all allowances. Inflationary pressures are harming not only government employees, but also private employees and retired civil servants. All employees demanded that the following allowances be increased as part of their monthly pay.
- Increase in Conveyance Allowance by up to 100%
- Medical Allowance of up to 50%
- House Rent Allowance of up to 100%
- Adhoc Relief Allowance 50%
- Increase in Salaries up to 50%
- increase in Pension up to 30%
The amount of the aforementioned allowances that are now included in salaries is significantly less than the initial costs. Due to inflation, every employee requests an increase in the aforementioned allowances. Every commodity’s cost has increased in recent years. However, there hasn’t been a satisfactory rise in the employees’ monthly salary.
Government Granted to Employees Budget 2023-2024
In earlier years, Pakistan has had significant financial ups and downs. As a result, it is extremely challenging for the finance division to distribute all the resources in accordance with the needs of the workforce or departments. All current and retiring government employees received relief thanks to the finance minister’s tireless efforts.
| Sr.No | Type of Increase | Increase Percentage |
| 1. | Salaries | 30 % to 35% |
| 2. | Pensions | 17.5% |
Government increases the following as per the budget speech
All government employees have continuously demanded wage and benefit increases over the last two to three months, taking the rate of rising inflation into account. On the government’s list of priorities are its employees. To relieve the pressure of rising inflation, the government, therefore, chooses to provide some respite.Additionally, the government raises the pension for every retired employee. The additional allowances are as follows:
Adhoc Relief Allowance 2023 Increased from 30% to 35%
The Finance Minister announces a 100% increase in government employees’ Adhoc Relief Allowance. The allowance will be included in the base wage of government employees.
| Sr.No | Type of allowance | Previous Allowance | % Increase in budget2023-24 |
| 1. | Adhoc Relief Allowance | 30% BPS-17 and above 35% BPS-1 to 16 |
TA/DA
Federal Government increased the TA/DA @ 50% of their current one
Conveyance Allowance for Special Persons
CA for special persons has been increased from 2000/- per month to 4000/- per month
Previous News of Salary Increase
Salary and pension increases were expected to rise by 20 to 30%, according to prior reports and sources, as well as cabinet discussions. Members of the cabinet also advocated raising the wages and allowances of all government employees from BPS-01 to BPS-20.
There was news of three wage packages for employees in Budget 2023-24. As people from every group or class in the lower middle face unprecedented inflationary pressures. As a result, it was proposed at the last meeting to raise the pension and salary from 20% to 30%.
On the 9th of June, 2023, the Finance Minister of Pakistan announced the Budget for 2023-24. Starting his speech with the name of Allah, he expressed his thoughts and visions for the forthcoming budget year. He commended the Department of Finance for their diligent work in crafting the budget to the best of their abilities. They strived to allocate resources to alleviate the burden on government department employees.
Retired public servants, who had served the government in the past, were also a top priority for the finance department. The Minister highlighted the fiscal challenges that Pakistan had been grappling with due to global influences and rising inflation. Yet amidst these challenges, he also presented some good news for all active and retired government servants.
Finance Division Struggle
The Ministry of Finance’s Finance Division created the budget for 2023-2024. The department extended the office hours of personnel working on the budget for 2023-24 in the preceding two months. The extra working hours are intended to complete the budget as quickly as possible. As the entire country anticipates significant reprieve from the pressures of inflation. The government announces the following percentage increase in salary and pensions in response to the request of all government regular and retired employees.
- 35% increase in salaries of In-service Government Employees BPS-01 to BPS-16 & 30% for BPS-17 to BPS-22
- 17.5% increase in pension of retired Government Employees
- 17.5% Pension for the retired Federal Govt Employees
