Pakistan Budget 2023-24: Salary and Pension Increased to Combat Inflation

Pakistan Budget 2023-24: Salary and Pension Increased to Combat Inflation

Islamabad, June 9, 2023: In an effort to support government employees amidst a significant surge in inflation, Finance Minister Ishaq Dar announced an increase in salary and pension during the presentation of the budget for the fiscal year 2023-24.

Recognizing the challenges faced by government employees due to inflationary pressures, Minister Dar emphasized that the rising cost of living had adversely affected their purchasing power. In response to these concerns and within the constraints of limited resources, the government has taken measures to provide relief to government employees.

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Key relief measures for government employees include:

1. Increase in Adhoc Relief Allowance: The government has increased the adhoc relief allowance for government employees to improve their buying power.

2. Increase in Allowances: Various allowances have also been increased, including:

i. Outstation Duty TA/DA Allowance and Mileage Allowance

ii. Additional Charge/Current Charge/Deputation Allowance

iii. Orderly Allowance

iv. Special Conveyance Allowance for Disabled

v. Constant Attendant Allowance (Military)

vi. Pensioners’ Driver Allowance

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3. Pension Increase: The pension of government employees has been increased to provide them with better financial support.

4. Minimum Pension: The minimum pension has been raised to Rs12,000.

5. Minimum Wage: The minimum wage within the jurisdiction of Islamabad Capital Territory (ICT) has been increased from Rs25,000 to Rs32,000.

6. Pension Disbursed by EOBI: The pension disbursed by the Employees Old-Age Benefit Institution (EOBI) has been increased from Rs8,500 to Rs10,000.

7. Loan Payment for Widows: The government will cover outstanding loans up to Rs1 million payable by widows to the House Building Finance Corporation (HBFC).

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These measures aim to alleviate the financial burden on government employees and enhance their standard of living amidst challenging economic conditions. The government is committed to providing relief and support to its employees and ensuring their well-being in the face of inflationary pressures.