Pension Increase in Budget 2023-24 Pakistan: The fiscal year budget 2023-24 in Pakistan brings promising news for government employees and retirees as the federal government has announced a considerable increase in salaries and pensions.
These measures aim to provide relief to the workforce and retirees amid the prevailing inflationary pressures. Let’s delve into the details of the pension increase and its impact on various segments of the population.
Up to 35% Salary Increase for Government Employees
According to the latest budgetary provisions, Grades 1 to 16 will witness an impressive 35 percent hike in their salaries as an ad-hoc allowance, while Grades 17 and above will receive a substantial raise of 30 percent. This decision has been approved by the federal cabinet, reflecting the government’s commitment to improving the financial well-being of its employees.
Also Read: Pakistan Budget 2023 – 24 in USD Dollars and Rupees (PKR)
The salary increments for government employees in the lower grades are expected to mitigate their financial challenges and improve their standard of living. Moreover, the raise for higher grades acknowledges the contributions and responsibilities of senior officials, ensuring a fair distribution of financial benefits across the hierarchy.
Pension Increase in Budget 2023-24 Pakistan for Retires
In addition to salary increments, the government has announced a 17.5 percent increase in pensions, addressing the concerns of retirees who often face difficulties in managing their expenses due to rising costs. This move demonstrates the government’s commitment to ensuring a dignified life for those who have dedicated their years of service to public institutions.
The minimum pension amount has been increased from Rs. 10,000 to Rs. 12,000, providing a significant boost to retirees’ income. This increment will assist them in meeting their basic needs and coping with inflationary pressures, ultimately enhancing their overall quality of life.
Furthermore, the Employees’ Old-Age Benefits Institution (EOBI) pension has also been raised from Rs. 8,500 to Rs. 10,000. This increase acknowledges the contributions of workers and ensures they receive adequate support during their retirement years.
Minimum Wage and Other Recommendations
The budget for 2023-24 also includes several other noteworthy measures. The minimum wage in the Islamabad Capital Territory (ICT) has been increased from Rs. 25,000 to Rs. 32,000, aiming to provide better livelihood opportunities and uplift the standard of living for workers in the capital.
Recommendation 1
| Grade | Salary Increase | Medical and Conveyance Allowance Increase |
|---|---|---|
| 1 to 22 | 10% raise | 100% increase |
Recommendation 2
| Grade | Salary Increase | Pension Increase |
|---|---|---|
| 1 to 22 | 25% raise | 15% raise |
Recommendation 3
| Grade | Salary Increase | Pension Increase | Medical and Conveyance Allowance Increase |
|---|---|---|---|
| 1 to 16 | 30% raise | – | – |
| 17 and above | 20% raise | – | 50% increase |
Conclusion
The budget 2023-24 in Pakistan brings positive news for government employees and retirees. The significant salary increase across different grades, combined with the raised pensions, reflects the government’s commitment to improving the financial well-being of its workforce and ensuring a dignified retirement for retirees. These measures are expected to alleviate financial burdens and enhance the overall quality of life for individuals across various segments of society.