As the clock ticks toward the announcement of the Federal Budget 2024-25, speculation about a potential salary increase for government employees is rife. Amidst the swirl of unconfirmed reports, the government’s silence only adds to the suspense.
In recent weeks, the rumor mill has churned out stories ranging from no pay rise to a 15% salary increase and a 10% pension hike. Yet, these remain unverified, with no official word from the government on the salary increase in budget 2024-25.
The Federal Government, under the new leadership that assumed office a few months ago, is reportedly contemplating a raise in the salaries and pensions of its employees and pensioners. This move is seen as a response to the country’s inflationary pressures. It’s worth noting that except for 2019, when only the Sindh Government implemented a pay and pension hike, salary increments have been a near-annual occurrence.
Preparations for the 2024-25 budget are set to kick off in the first week of May 2024. Prime Minister Shahbaz Sharif has formed an 11-member ministerial committee, led by Finance Minister Muhammad Aurangzeb, to review the budget proposals. The government aims to curb inflation to a target range of 5% to 7% by September 2025. The Federal Board of Revenue’s revenue collection target for the financial year 2024-25 is projected to be Rs. .952 trillion.
Expected Salary and Pension Hikes in Budget 2024-2025
The government is likely to announce a 10% salary increase for employees in the upcoming budget year 2024-2025. However, the final decision will be made after reviewing the finance ministry’s proposals. If approved, the salary increase will take effect from 1st July 2024.
Prime Minister Shahbaz Sharif acknowledged the hardships faced by the common man due to the high cost of living in the country. He assured that the government would increase employee salaries despite financial constraints. Bilawal Bhutto Zardari, on 1st May 2024, echoed similar sentiments, urging the Federal Government to consider the rising cost of living when deciding on salary increments. The Sindh Government also plans to raise the salaries of its employees.
Demands of Government Employees
Government employees have voiced their expectations for the upcoming budget 2024-2024, which include an increase in House Rent Allowance (HRA), pension, a minimum 50% salary increase, a rise in Medical Allowance, up-gradation of posts, and regularization of employees.
As the anticipation builds, all eyes are now on the Federal Budget 2024-25 announcement, where the mystery of the salary increase in budget 2024-25 will finally be unveiled.
