Federal Govt Budget 2021-22 Pakistan salary increase chart. Everyone who live in Pakistan and works as a government employee in the government sector wants to increase their salaries in upcoming budget 2021-22. That’s why, the Federal Government is working on budget plan to increase the government employees pay and pensions. They started a work on this plan since last Monday. In this plan, the federal government has considered many proposals under consideration such as elimination of a big disparity in many ministries employees’ salaries, departments & divisions, to decrease the government’s pension bill: introduce a new system, and fixing the basic pay amount for pensions facility after the completion of employees 25 years service.
However, the federal government has decided to provide a temporary relief of 15 to 20% to the government employee’s salaries for the next fiscal year 2021-22. The salary increase budget 2021-22 will come in effect on July 1, 2021.
The tentative date of announcement of Federal Budget 2021-22 in Pakistan is 11th June 2021.
Budget 2021-22 Pakistan salary increase
In the last budgets, every government employee has disappointed because of no increase in salaries. That’s why, now all the employees are waiting in huge increase in salaries in upcoming budget 2021-22.
The sources explained that there is an expectation of 15 to 20% increase in the government employee’s salaries in the upcoming budget 2021-22, which will be based on the pay gap reduction formula. The pay gap reduction means to less increase in employee’s salaries who receiving higher salaries and benefits. The sources also explained that federal government is focusing to introduce a contributory pension system to minimize the pension bill for new hiring employees.
In the salary increase budget 2021-22, the government added a separate pension contributory fund for which the World Bank will provide the seed money. Another proposal is provided in this budget, which is that the government employee’s basic salary must be frozen after the completion of 25 years of service in government sector. This statement explains that there will be no increase in the government employee’s salaries after their 25 years of service. The employee’s pension will also consist on their 25 years of service. This basic salary proposal aim is to encourage the government employees to retire them at the completion of 25 years of service.
Recommendations of Salary
The sources also said that 3 recommendations are also under consideration in the government employee’s salary increase budget plan 2021-22. These recommendations describe as follows:
- The federal government recommends to give 15% increment in salaries by freezing 2 Adhoc Allowance
- They also recommend to provide 20% increment by freezing 2 Adhoc Allowance
- Also recommend to provide 25% increment by freezing 2 Adhoc Allowance
Main Demands of Upcoming Budget 2021-22:
- Increment in the allowance of house rent
- Medical Allowance
- Adhoc Relief Allowance
- Up grade many government employees posts
- Increment in Pension
These are all the demands that government employees want to improve in coming budget 21-22.
Increment in the House Rent Allowance:
At this time, the all government employees are receiving 30 to 45% house rent allowance by the initial revised pay scale of 2008. In 2018, the HRA were revised by the government of PMLN. The increment was made 50% in HRA. These days, the government employees are getting Rs 5000 to 10000 in a small city. The employees with BPS scale 1 is receiving maximum of Rs 2006, while BPS 16 receiving Rs 4091 HRA per month. Now the government should revise the pay scales and allowances in the coming budget 2021-22.
The government last time increased the medical allowance in 2015 by the PMLN government. After that, there is no any increment in medical allowance. The medicines and doctor examination rates are high while the employees are receiving Rs 1500 medical allowance. So, now the government should increase the Medical Allowance.
Adhoc Relief Allowance:
The government employees were getting frozen 10% Adhoc relief allowance in 2016, in 2017 10% running, and in 2018 also receiving 10% running Adhoc relief allowance. In 2019, they were receiving 5% for BPS-16 to 19 and 10% for BPS 1 to 16 scales. Now, the government employees demand to merge all Adhoc allowances into their basic pay scales in the coming budget, which will come on July 1, 2021.
Up-grade many Government Employees Posts:
In the province and federal, there are many government job posts with different scales. The employees are demanding that government should give equal scales to all the same designations. The employees who have low pay scales, should be up-grade these posts by the government.
upgradation Notification 2021
Government of Pakistan issue Press Release regarding Increase in Salaries and Upgradation of 1 to 16 Scale as Per kpk Provinces pattern.
|Sr. No.||Name of post||Existing Scale||Upgraded Scale|
|6.||Tele phone Operator||BS-09||BS-11|
Increment in Pension:
The government pensioners are facing many difficulties in their pensions. The government did not still increase pension. That’s why, the government should increase retired employee’s pension according to the pay scale rates.
Latest Revised Pay Scales 2021-22
The Basic Pay scales were last revised in 2017 after that new pay scales were revised. Now There are 4 main allowances that the employees are getting at this time these are as under:
- Adhoc Relief Allowance 2016 (Frozen)
- (Adhoc Relief Allowance 2017 @10%)
- Adhoc Relief Allowance 2018 (10%)
- Adhoc Relief Allowance 2019 (5% & 10%)
- DRA 2021 @ 25% (Federal Only)
Salary Chart :
The Finance Ministry said that the company will again check the entire pay and pension budget structure for 2021-22 and then submit a comprehensive report to the government. This will happen in 6 months.