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  1. Home
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  3. The initial proposal in the federal budget suggests a 15 to 20 percent increase in salaries

The initial proposal in the federal budget suggests a 15 to 20 percent increase in salaries

June 5, 2024 0 Comment

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The federal budget’s preliminary proposal has disclosed an anticipated increase in salaries ranging from 15 to 20 percent. Treasury sources have revealed that within the monetization policy for bureaucrats, there is a proposal to elevate salaries from 40,000 to 60,000 rupees.

The proposed monetization policy outlines several significant adjustments in salaries and allowances for government officers across different grades. For officers up to Grade 20, the proposed monetization is set to increase from 65,000 to 105,000 rupees, while Grade 21 officers may see an increase from 75,000 to 120,000 rupees. There’s ongoing consideration for Grade 22 officers, with a potential rise from 95,000 to 155,000 rupees.

An estimated impact of around 80 billion rupees is expected with a 10 percent salary increase for employees across Grades 1 to 22. There’s also a demand for a substantial 200 percent increase in medical and conveyance allowances for Grades 1 to 16, with conveyance allowances potentially rising to 18,000 rupees and medical allowances to 1,500 rupees.

Presently, officers of Grade 17 and 18 receive a 5,000 rupees conveyance allowance, with a proposed 200 percent increase under review. Additionally, there’s a plan to continue issuing disparity allowances for Grades 1 to 16, aimed at reducing salary gaps between provincial and federal employees. These proposals are in their preliminary stages, and the final decision will be made by the Prime Minister in consultation with the Ministry of Finance and the Cabinet.

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