The Ministry of Finance has announced a salary increase of up to 25 percent for employees of government and semi-government corporations. According to the official notification, employees in BPS 1 to 16 will receive a 25 percent salary hike, while officer-ranked employees in BPS 17 to 22 will get a 20 percent raise. This increase, effective from July 1, 2024, offers much-needed financial relief to thousands of employees nationwide.
The raise was introduced by Finance Minister Muhammad Aurangzaib during the 2024-25 budget announcement. The minister proposed a 25 percent salary increase for lower-grade employees and a 20 percent increase for higher-ranking officials, along with a 15 percent pension boost for retirees. He also suggested raising the minimum monthly wage from Rs 32,000 to Rs 37,000. The National Assembly later approved these proposals.
In addition to the salary hike, the federal government has introduced new tax exemptions and adjustments. Individuals earning up to Rs 600,000 annually will no longer have to pay income tax. For those earning between Rs 600,000 and Rs 1.2 million, a 5 percent tax will apply. Higher earners will face progressive tax rates, with those making over Rs 4.1 million taxed at a fixed Rs 7 lakh plus 35 percent on the excess amount.
