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Cabinet gives nod to 15% increase in govt employees salaries

Updated 13 Jun, 2022
<p>In the budget of Imran Khan’s previous government, salaries and pensions of government employees were increased by 10 per cent. AFP/File</p>

In the budget of Imran Khan’s previous government, salaries and pensions of government employees were increased by 10 per cent. AFP/File

ISLAMABAD: The federal cabinet, which met under the chairmanship of Prime Minister Shehbaz Sharif, gave approval to a fifteen per cent increase in the salaries and five per cent in the pension of government employees on Monday.

The cabinet also gave a nod to merging the ad hoc allowances (2016-17-18-19 & 21) of government employees into their Basic Pay Scale 2017. In the budget, the finance ministry had proposed a 10 per cent increase in salaries. But, PM Shehbaz rejected the proposal and approved a 15% increase.

Salary bracket Monthly tax
Rs50,000 per month or Rs600,000 annually Zero tax
Rs100,000 per month or Rs1.2 million annually Rs100
Rs200,000 per month or Rs2.4 million annually Rs7,000
Rs300,000 per month or Rs3.6 million annually Rs19,500
Rs400,000 per month or from Rs3.6 million to Rs6 million annually Rs54,500
Rs500,000 per month or from Rs6 million to Rs12 million annually Rs65,750
Rs1 million per month or Rs12 million annually Rs167,000
People earning over Rs12 million annually Over 32.5%

In the budget of Imran Khan’s previous government, salaries and pensions of government employees were increased by 10 per cent. In Finance Bill 2022/23, the tax slab for employed professionals has been reduced from 12 to 7.

Other benefits

  • 15% ad-hoc relief on the running basic pay of BPS 2017
  • Executive allowance at 150% of the basic pay to the officers’ BS 17 to 22 working in Federal Secretariat in line with provincial governments.
  • Disparity reduction allowance 2022 at 15% will be extended to officers of BPS 20 to 22 including principals, secretariat officers and officers of attached departments.
  • Conveyance Allowance enhanced up to 100%
  • Transport allowance will be granted Rs25,617 to the officers BPS 17 to 19 working in federal secretariat in place of conveyance allowance
  • Qualification pay enhanced by 100%
  • Orderly allowance increased from Rs17,500 to Rs25,000
  • Rates of drivers salary to the officers in transport monetization enhanced to Rs25,000
  • Entertainment allowance abolished