Increase in the salaries of government employees.

Proposals for significant salary increases have emerged.

According to details, the federal government, amidst numerous economic challenges, is set to announce its first budget for the fiscal year 2024-25 on June 12.

All federal and provincial government employees eagerly await the budget announcement every year, as the government typically increases their salaries considering various factors, including inflation.

Preparations are underway to open the treasury for employees in the upcoming budget, setting aside austerity measures and campaigns.

Sources from the Ministry of Finance have indicated that an initial proposal for the next federal budget suggests a 15% to 20% increase in salaries for employees.

A proposal to increase the monetization policy for bureaucracy from 40,000 to 60,000 rupees has been made, with monetization for officers up to grade 20 proposed to increase from 65,000 rupees to 105,000 rupees. For grade 21 officers, the monetization policy is suggested to increase from 75,000 rupees to 120,000 rupees.

The monetization for a grade 22 officer is proposed to increase from 95,000 rupees to 155,000 rupees.

A 10% increase in salaries for employees from grade 1 to 22 would result in an impact of approximately 80 billion rupees.

There is a demand for a 200% increase in medical and conveyance allowances for employees from grade 1 to 16. Currently, employees from grade 1 to 16 receive a conveyance allowance of 1,800 rupees and a medical allowance of 1,500 rupees, while officers in grades 17 and 18 receive a conveyance allowance of 5,000 rupees.

An initial proposal suggests a 200% increase in the conveyance allowance for grades 17 and 18 as well. Employees in grades 1 to 16 received a disparity allowance of 25% and 15% in 2021 and 2022, respectively.

To reduce the salary disparity between provincial and federal employees, there is also a proposal to continue the disparity allowance. However, these proposals are in the initial 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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