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Govt Increases Salary of Federal Employees in Budget 2018-19

The federal budget of Pakistan fro he fiscal year 2018-19 has been presented today in the National Assembly of Pakistan on 27 April 2018 by Federal Minister for Finance, Revenue and Economic Affairs.

The federal government has increased the salaries / pensions as per budget speech document:

  • A 10 percent Ad-hoc relief allowance to civil and armed forces employees with effect from 1 July 2018.
  • A 10 percent increase is also being proposed for pensioners across the board.
  • Housing is a serious problem for government employees in major cities. House rent ceiling is being increased by 50 percent.
  • Similarly, house rent allowance is also being increased by 50 percent.
  • Considering the difficulties of low-paid pensioners, minimum pension is being increased to Rs.10,000 from the present Rs.6,000. Similarly, family pension would also get increased from Rs.4,500 to Rs.7,500.
  • Minimum pension of pensioners above the age of 75 will be Rs.15,000.
  • Overtime allowance of staff car drivers and dispatch riders is being increased from Rs.40 per hour to Rs.80 per hour.
  • The government has also proposed an allocation of Rs.12 billion for provision of advances to government servants for house-building and purchase of transport facility.
  • The government is also setting aside an allocation of Rs.5 billion for Senior Officers Performance Allowance.

The federal minister states that this increase would result in additional burden of Rs.69 billion to the government.


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