ISLAMABAD: The government has proposed to provide an increase of 7.5 percent on running basic salary of the federal government employees from July 01, besides merging adhoc relief of 2011 and 2012.
Presenting Federal Budget 2015-16 before the Parliament, Finance Minister Mohammad Ishaq Dar Friday said the pensioners of federal government would also get an increase of 7.5 percent as adhoc relief allowance.
“Following the Pay Committee recommendation, the government has also raised the medical allowance of federal government employees and the pensioners by 25 percent”, the minister said adding this year, the employees of grade-V would also get one premature increment which was only given to the employees up to grade-V last year.
The minister said for the welfare of laborers, the minimum wage has also been proposed to increase by Rs 1000 from Rs 12000 per month to Rs 13000.
Moreover, he said from July, 01, the federal government employees having Ph.D and D.Sc degrees would be given an allowance of Rs 10,000 per month which would replace science and technology allowance of Rs 7500 and Ph.D allowance of Rs 2250.
He said special pay of senior private secretaries, private secretaries, and assistant private secretaries has also been proposed to increase by 100 percent.
The minister said with the increase of salaries, pension and allowances, the federal government would have the bear additional expenses of Rs 46 billion.
He said the present government was committed to reducing non-productive expenditure to achieve greater availability of fiscal space for development spending.
This year, he said, inflation has substantially come down and there is a trend of price stability.
“However, the government is fully cognizant of low compensation level of government employees and pensioners”, he added.