Government Extends 35% Increase in Salary to Corporation Employees

Government Extends 35% Increase in Salary to Corporation Employees

Islamabad, August 3, 2023 – In a significant move, the federal government has extended the 35 percent increase in salary, previously announced for all federal government employees in the budget 2023-24, to employees of autonomous and semi-autonomous bodies as well as corporations.

This decision comes as part of the government’s efforts to provide financial relief and boost the morale of the employees amid economic challenges.

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A notification issued by the finance ministry on August 2, 2023, stated that the salary increase will be applicable to those autonomous and semi-autonomous bodies and corporations that have adopted the federal government’s basic pay scales scheme in its entirety. However, the increase will not be applicable to public sector corporations and autonomous bodies that have opted for different pay scales and allowances.

For organizations with different pay scales, the grant of Adhoc Relief Allowance 2023 will be at 30 percent and 35 percent of basic pay, subject to existing conditions, with the concurrence of the standing committee of the finance division based on the recommendations of the respective boards of directors or governors.

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It is crucial to note that the implementation of the Adhoc Relief Allowance 2023 will depend on the financial position of the respective organization. The government aims to ensure that the salary increment is sustainable and aligned with the financial capabilities of each autonomous body and corporation.

To streamline the process, the finance division has clarified that only executive and supervisory staff will initially receive the Adhoc Relief Allowance at the specified percentages, effective from July 1, 2023. Subsequently, with the approval of their respective boards of directors or governors, the non-executive and non-supervisory staff of these organizations will also be eligible to receive the benefit.

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This decision has been met with appreciation from employees across the public sector corporations and autonomous bodies that are covered under the scheme. The increase in salary is expected to have a positive impact on the livelihoods of thousands of workers and improve their overall job satisfaction.

As the economic situation evolves, the government remains committed to implementing policies that support the workforce and promote financial stability for organizations. The extension of the 35 percent salary increase to corporation employees is a step towards achieving these objectives.

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With the grant of Adhoc Relief Allowance 2023 being linked to the financial position of each organization, it is hoped that this measure will not only benefit the employees but also ensure responsible financial management across the sector.

Overall, this move signals the government’s commitment to addressing the concerns of employees and taking concrete steps to alleviate their financial burden during these challenging times.