ISLAMAABD: A 10% to 15% increase in the salaries of government employees is expected in the federal budget for the fiscal year 2024-25. The federal government is also expected to raise the pensions of retired employees by 10%.
Moreover, there is a proposal under consideration to increase the funds for the Employees’ Old-Age Benefits Institution (EOBI). Pension reforms aimed at reducing the burden on the national exchequer are also likely to be introduced.
The government is contemplating setting the Federal Board of Revenue (FBR) tax revenue target at over Rs12.5 trillion for the upcoming budget. Regarding salaries, the Ministry of Finance is inclined towards a 10% raise.
However, due to potential pressures, there may be fiscal adjustments that could increase this raise to 12.5% or even 15%.
Another proposal under review is to increase the car monetization benefits for higher-grade officers in grades 20, 21, and 22 by 20% to 25%. Currently, grade 20 officers receive Rs67,000 per month, grade 21 officers receive Rs77,000 per month, and grade 22 officers receive Rs87,000 per month. Given inflationary pressures, an increase is being considered, as these rates have not been adjusted since the policy’s inception in 2012.
The News reported on Monday that the government plans to introduce pension reforms in the next budget for 2024-25. One proposal under consideration is to impose a tax on pensioners receiving over Rs100,000 per month, potentially introducing different tax slabs for higher-income pensioners starting from the next budget.
