Commission constituted to review salary, perks of government employees

Commission constituted to review salary, perks of government employees

ISLAMABAD: The federal government has constituted a pay and pension commission to review existing salary and perks.

According to the finance ministry, the government of Pakistan had constituted a Pay and Pension Commission, with effect from 14-04-2020.

The Composition of the Commission shall be as follows:

Mr. Wajid Rana, Former Federal Secretary, Chairman.

Mr. Nazar Hussain Mahar, Retired Civil Servant, Member.

Dr. Noor Alam, Retired Civil Servant, Member.

Ms. Seema Kamil, President, United Bank Limited, Karachi, Member.

Mr. Zubyr Soomro, Chairman, Board of Directors, National Bank of Pakistan, Member.

Ms. Nausheen Ahmed, Company Secretary, ICI (Pakistan) Limited, Member.


Secretary, Finance Division, Government of Pakistan, Member.

Secretary, Establishment Division, Government of Pakistan, Member.

Secretary, Defence Division, Government of Pakistan, Member.

Secretary, Finance Department, Government of Punjab, Member.

Secretary, Finance Department, Government of Khyber Pakhtunkhwa, Member.

Secretary, Finance Department, Government of Sindh, Member.

Secretary, Finance Department, Government of Balochistan, Member.

Secretary, Finance Department, Government of AJ&K, Member.

Secretary, Finance Department, Government of Gilgit Baltistan, Member.

An Officer of BS-21 of the Auditor, General of Pakistan, Government of Pakistan, Member.

An Officer of BS-21, Controller General of Accounts, Government of Pakistan, Member.

Joint Secretary (Regulations), Finance Division, Government of Pakistan, Member/Secretary.

The terms of Reference of the commission are as following.


a) Study the adequacy of existing Basic Pay Scale System and to evaluate the current salaries of Government employees throughout the federation including the provincial government and recommend measures for its improvement and uniformity. Also make recommendations for the streamlining of existing classification from BPS 1-22.

b) Study the separations of existing Basic Pay Scales for specialized departments/occupations/cadres.

c) Review of Special Scales such as Management Grades, Management Position Scales (MP Scales), Special Professional Pay Scales (SPPS), Project Pay Scales etc. and propose measures for uniformity and improvement.

d) Review of admissible Regular allowance, Special incentives and all other allowances with a view to highlight prevalent distortions and recommend corrective measures.

e) Review of existing perks and facilities and make recommendations, including possibility of their monetization.


To Review the Pension system of the Government of Pakistan:

A) Highlight existing distortions and anomalies in the Pension Scheme and recommend remedial measures. Verify the sustainability of the current model after critically evaluating future liabilities through an actuarial study.

B) Evaluate alternate system of Pension like defined contribution and setting up of pension funds in light of international best practices and recommend a system with clear timelines that is more efficient and sustainable, considering the available recourses.

iii) To Review the existing incentive regime (honorarium and special rewards) and recommend improvement in it.

iv) To evaluate and recommend legislative measures to protect and streamline Pay, Pension and Allowances regime for government employees.

v) The Commission may, if so desired by the Government, make interim recommendation to provide interim relief, pending the submission of its final report.

vi) The Commission shall have power to co-opt any person or agency to assist it in its deliberations>

vii) The Finance Division shall provide Secretariat support to the Commission and the Commission shall make its recommendations within 6 Months of its constitution. While formulating its proposal/recommendations on the above terms of reference, the pay and pension commission would take into consideration the financial recourses of the Government.

The scope of work of the Commission will include Federal and Provincial civil servants, other government servants, civilians paid from defence estimates, all Armed Forces/Civil Armed Forces personnel and holders of the posts in Management Scales and employees of such Public sector corporations/autonomous/semi-autonomous bodies, other than Banks and DFIs, which have adopted the scheme of Basic Pay Scales in toto.

Employees of Public Sector Corporations/Autonomous/Semi-Autonomous bodies who are regulated under the Pay Scales prescribed by these organizations and the employees governed under the Industrial Relations Ordinance, 1969 and/or whose financial terms of service are settled through Collective Bargaining Agents, are executed from the scope of work of the Pay & Pension Commission.