Increase in salary of KPK Government employees in Budget Of 2025 – All eyes are on the upcoming budget as government employees anticipate salary raises amid soaring inflation. KP Governor Faisal Karim Kundi has summoned the budget session for May 24 to unveil the FY25 budget. With a proposed budget of Rs1,754 billion, including Rs200 billion for the annual development program, the government is expected to increase salaries and pensions to match the rising cost of living. Reports suggest a possible 10% to 15% salary increase for government employees and a 10% pension increase for retirees. Additionally, pension reforms may be introduced, potentially including the CP Scheme and a reduction of gratuity from 35% to 25%. Stay tuned for the official announcement and detailed updates in the coming days.
Increase in salary of KPK Government employees in Budget Of 2025
Informed sources reveal a proposed 10-15% salary increase for KP government employees. The KP finance department has presented budget and annual development program suggestions to Chief Minister Ali Amin Gandapur for his endorsement. The budget, to be reviewed and finalized before the provincial cabinet meeting tomorrow, includes positive updates on salaries and pensions. Provincial Finance Adviser Muzammil Aslam announced no new taxes for Malakand Division and merged tribal districts, emphasizing consultation with local leaders before any tax imposition. Additionally, property tax rates will be reduced, and a provincial excise duty on tobacco will be introduced.
Latest Updates: Salary and Pension Increases in the 2024-25 Budget for Government Employees
According to the Daily Express on May 19, 2024, employees may see a 10% to 15% increase in their current basic pay, and pensioners might receive a 10% boost in their pensions. There are also proposals to raise old age benefit pensions. Although there was talk of a 25% to 35% salary increase for government employees, nothing is finalized. We must wait for the Budget announcement on June 7, 2024, for the final decision.
Proposed Pension Reforms for 2024-25 Budget
The government is planning pension reforms for its employees and pensioners. A new Contributory Pension Scheme may be introduced, shifting new recruits to this system. Possible changes include modifying the pension calculation formula from the current 35% commutation and 65% pension to a 25% commutation and 75% pension split. While these changes are speculative, the details will be confirmed during the budget speech. Additionally, the Daily Dunya Newspaper has reported a potential 12% salary increase in the 2024-2025 budget, subject to final discussions and approvals.
Employees’ Demands
Government employees are grappling with the burden of escalating living costs, particularly in daily essentials and transportation. They are fervently appealing to the government to incorporate substantial enhancements in the upcoming 2024-2025 budget. These include a substantial salary increase of at least 50%, a minimum pension rise of 25%, revising House Rent Allowance based on 2022 pay scales instead of outdated 2008 scales, ensuring a minimum Medical Allowance of 5000/- per month, implementing a fair Conveyance Allowance ranging from 10,000/- to 15,000/- depending on pay scales, and uniformly upgrading employees’ statuses nationwide.