Government Employees in Pakistan Granted Salary Increase of up to 35%

Government Employees in Pakistan Granted Salary Increase of up to 35%

Islamabad, July 6, 2023 – In a major development, the President of Pakistan has approved a substantial salary increase of up to 35 percent for government employees. The finance ministry issued a notification outlining the details of this salary raise.

According to the notification, the President has sanctioned the implementation of an Ad-hoc Relief Allowance-2023, effective from July 1, 2023, until further notice. This allowance applies to all federal government employees, including Armed Forces Personnel, Civil Armed Forces, Civil Employees of the Federal Government, civilians paid from Defense Estimates, contingent paid staff, and contract employees employed against civil posts in Basic Pay Scales under standard terms and conditions of contract appointment.

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The Ad-hoc Relief Allowance-2023 will be granted at the following rates:

• Basic Pay Scale (BPS) 1 to 16: 35% of Basic Pay as of June 30, 2023

• BPS 17 to 22: 30% of Basic Pay as of June 30, 2023

It is important to note the following aspects regarding the Ad-hoc Relief Allowance-2023:

• The allowance will be subject to income tax.

• It will be admissible during leave and the entire period of leave preparatory to retirement, except during extraordinary leave.

• The allowance will not be considered part of emoluments for calculating pension, gratuity, and house rent recovery.

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• Employees will not receive the allowance during their tenure of posting or deputation abroad.

• Upon repatriation from posting or deputation abroad, employees will receive the allowance at the rate and amount that would have been admissible had they not been posted abroad.

• The term “Basic Pay” for the purpose of the Ad-hoc Relief Allowance-2023 will also include the amount of personal pay granted due to annual increments beyond the maximum of the existing pay scales.

• The respective Ministries/Divisions/Departments will accommodate the Ad-hoc Relief Allowance-2023 within the budgetary allocation for the year 2023-24, with no supplementary grants provided for this purpose.

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This significant salary increase for government employees highlights the government’s commitment to ensuring the financial well-being and improved living standards of its workforce. The Ad-hoc Relief Allowance-2023 will provide employees with greater financial stability and recognition for their dedication and service.

The implementation of this salary increase will be eagerly anticipated by government employees across various sectors, offering them increased financial support and a brighter future.