The federal government has ruled out any increase in salaries and pensions for public sector employees in the upcoming budget, Finance Minister Muhammad Aurangzeb confirmed in a written response to the National Assembly.
During the question hour, Aurangzeb stated that no proposal is under consideration to revise pay scales, allowances, or pensions for government employees in the next fiscal year.
However, he mentioned that the government is reviewing the ceiling and hiring limits for public sector workers.
The announcement comes at a time of rising inflation, with many government employees hoping for financial relief in the upcoming budget.
The decision is expected to spark concern among public sector workers who have been struggling with the increasing cost of living.
While the government continues to assess its financial policies, the lack of a salary increase could add to the economic strain on employees. The upcoming budget will likely be closely watched by various stakeholders as discussions on economic measures unfold.
Earlier this month, the government announced significant changes to pension calculations, introducing new conditions and restrictions.
A notification issued on Wednesday stated that pension will now be calculated based on the average salary of the last 24 months, rather than the final salary. Additionally, employees will no longer be allowed to receive multiple pensions.
According to the notification, the new calculation will not apply to employees opting for voluntary retirement. Furthermore, incremental raises in the final year of service will not be included in the average pension calculation.
The government has also revised the pension increment mechanism for existing pensioners, ensuring that family pensions will now be calculated based on net pension values.
