Government weighs salary and pension hike ahead of new budget

Officials have reportedly proposed a 10 percent increase in salaries for government employees, while retired workers may receive a 7 percent rise

The federal government is considering a range of relief measures for public sector employees and pensioners as part of the upcoming fiscal year’s budget, according to sources familiar with the budget proposals.

Officials have reportedly proposed a 10 percent increase in salaries for government employees, while retired workers may receive a 7 percent rise in their pensions. The recommendations have been submitted by the Ministry of Finance and are currently under review as budget preparations enter their final stage.

In addition to salary and pension adjustments, the government is also examining proposals to enhance conveyance and medical allowances to help employees cope with rising living costs. Another proposal under consideration involves merging one of the existing ad hoc allowances into the basic pay structure, a move that could provide long-term financial benefits to workers.

Sources further indicated that the salary increase may be implemented in two phases, with lower-grade employees expected to receive comparatively larger raises. Employees in Grades 1 to 16 are likely to benefit more significantly, while those in Grades 17 to 22 may receive smaller adjustments.

The final decision on these proposals is expected to be announced during the presentation of the federal budget for the next financial year.