Finance ministry notifies increase in salaries, pensions

ISLAMABAD   -  The ministry of finance on Wednesday notified the increase in salaries of the federal government employees and pensions as announced in the annual budget for the fiscal year 2024-25.

“The President has been pleased to sanction with effect from 1st July, 2024 and till further orders, an Adhoc Relief Allowance-2024 to all the Federal Government Employees i.e. Armed Forces Personnel, Civil Armed Forces and Civil Employees of the Federal Government as well as the civilians paid from Defence Estimates including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment,” said a notification issued by the ministry of finance. The rate of Adnoc Relief Allowance2024 is as, for BPS-1 to 16 at 25% of running basic pay and for BPS-17 to 22 at 20 percent of running basic pay. The amount of Adhoc Relief Allowance-2024 will be subject to Income Tax and will be admissible during leave and entire period of LPR, except during extra ordinary leave. The allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of rouse rent and will not be admissible to the employees during the tenure of their posting/deputation abroad; and will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them had they not been posted abroad.

The term “Basic Pay” for the purpose of Adhoc Relief Allowance2024 will also include the amount of the personal pay granted on account of annual increment (s) beyond the maximum of the existing pay scales. The above Adhoc Relief Allowance-2024 shall be accommodated from within the budgetary allocation for the year 2024-25 by the respective Ministries/Divisions/Departments and no supplementary grants we be given on this account. Meanwhile, another notification said, “The President has been pleased to sanction an increase @ 15% of net pension with effect from 1” July, 2024 until further orders to all Civil Pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces Personne! and Civil Armed Forces Personnel”. The increase in pension @ 15% as mentioned at para-1 above will also be admissible to the pensioners who would retire on or after 01.07.2024.

For the purpose of admissibility of increase in pension sanctioned in this O.M. the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”. The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353. 5, If the gross pension sanctioned by the Federal Government is shared with any Government in accordance with the rules laid down in Part-lV of Appendix-ill to the Accounts Code, Volume-4, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis. The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetized value of a driver or an orderly.

Meanwhile, the government has imposed restrictions on the remuneration received by the government officers from board meeting. “The government servants appointed to the Board of Companies/Organizations and who become entitled to fee shall only be allowed to retain remuneration to a maximum of Rs. 1.0 million (Rupees one million only) in a financial year. Any amount in access of Rs. 1.0 million (Rupees one million only) so received shall be deposited by the officer in the government treasury and record of the same shall be promptly provided to the administration wing of the respective Ministry/Division,” said a notification.