ISLAMABAD, July 2(ABC): The federal government has notified an increase of 15 per cent and 5 per cent in salaries and pensions, respectively, of all government employees with effect from July 1, after merging five ad hoc allowances since 2016 into the basic pay scales.
A notification issued by the finance ministry on Friday said that the raise took its effect from July 1. In addition to the increase in the minimum and maximum wages of the employees, the annual increment has also been increased.
According to the notification, five ad hoc allowances and reliefs of 10 per cents of the running basic pay from 2016 to 2021 have also been merged with the salary and frozen at the level of its admissibility as on July 1, 2022.
As a result, the minimum salary of a grade-1 government employee will be Rs13, 550 and the maximum salary will be Rs26,450. The minimum salary of grade-17 employees has been increased to Rs45,070 while the maximum pay will be Rs113,470.
Likewise, the minimum salary of grade-21 employees will be Rs113,790 and the maximum salary will be Rs217,670. The minimum salary of a grade-22 employee will be Rs122,190 and the maximum salary will be Rs244,130.
The notification further said that previously on April 1, 2022 pensions had been increased by 10 per cent, and now a 5 per cent raise was announced, adding that retired officials of the armed forces as well as of the civil armed forces would also be entitled to the increase in pensions.
Furthermore, the decision also covered the officials retiring after July 1, 2022.
Similarly, a fifteen per cent ad hoc allowance will also apply to contract employees and contingent employees.
Meanwhile, special allowances, house rent allowance and other allowances equal to the basic salary of the employees of all ministries and divisions, including the judiciary, have been frozen at the level of 30 June 2022.