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  • Sindh increases salary by 15% from July 1, 2022

    Sindh increases salary by 15% from July 1, 2022

    KARACHI: The Sindh government on Tuesday announced a 15 per cent raise in salary of provincial government employees and 5 per cent increase in pension effective from July 01, 2022.

    Sindh Chief Minister Syed Murad Ali Shah announced raise in pay and pension while presenting the provincial budget 2022-2023.

    READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

    The chief minister announced various relief measures for employees and pensioners during next fiscal year.

    He said Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of Federal Government are being merged and Revised Basic Pay Scale 2022 for Civil Servants of Government of Sindh is being introduced on the pattern of Federal Government.

    Adhoc Relief Allowance at the rate of 15 per cent of Basic Pay Scales to Civil Servants of Government of Sindh w.e.f. 1st July 2022 is proposed.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished w.e.f 1st July, 2022.

    Pensioners of Government of Sindh were already getting 22.5 per cent more increase in net pension than pensioners of Federal Government till February 2022. Therefore, an increase at the rate of 5 per cent of net pension will be paid to the pensioners of the Sindh Government w.e.f 1st July, 2022.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    Thus, after announcement of 10 per cent increase in net pension by Federal Government in March 2022 and enhancement of the rate of increase to 15 per cent from 1st July 2022, the pensioners of Government of Sindh will still be getting 12.5 per cent more of net pension than the pensioners of Federal Government.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

  • Khyber Pakhtunkhwa raises salary, pension by 15%

    Khyber Pakhtunkhwa raises salary, pension by 15%

    PESHAWAR: Khyber Pakhtunkhwa on Monday announced 15 per cent increase in salary of provincial government employees and 15 per cent increase in pension as well.

    Finance Minister Taimur Salim Jhagra announced the increase in salary and pension of provincial employees while presenting the provincial budget 2022-2023.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The minister announced Rs15 percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance.

    He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.

    The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    He said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-2022.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.

    As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-2023.

    READ MORE: New rates of capital gain tax on disposal of securities

  • Notification issued to raise 10% in pension

    Notification issued to raise 10% in pension

    ISLAMABAD: The Finance Division has issued a notification to implement the decision of the government to raise 10 per cent increase in pension to pensioners of the federal government.

    Prime Minister Shahbaz Sharif has sanctioned an increase of 10 per cent of net pension with effect from April 01, 2022 until further orders to all civil pensioners of the federal government including civilians paid from defence estimates as well as retired armed forces personnel and civil armed forces personnel.

    READ MORE: SBP’s instructions on pensioners biometric verification

    The finance division explained that for the purpose of admissibility of increase in pension sanctioned the term ‘Net Pension’ as pension being drawn minus medical allowance.

    The increase will also be admissible on family pension granted under the pension-cum-gratuity scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extraordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

    READ MORE: EOBI to launch self assessment scheme for employers

    The finance division said that if the gross pension sanctioned by the federal government is shared with any government in accordance with the rules laid down in Part-IV of Appendix-III to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the federal government and the other government concerned on proportionate basis.

    READ MORE: Mandatory biometric verification restored for pensioners

    “The increase in pension sanctioned will not be admissible on special additional pension allowed in lieu of pre-retirement orderly allowance and monetized value of a driver or an orderly,” it said.

    The benefit of increase in pension sanctioned will also be admissible to those civil pensioners of the federal government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after August 15, 1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts.

    The payment will be made at the applicable rate of exchange, it said.

    READ MORE: Pensioners living abroad require presenting life certificate

  • SBP’s instructions on pensioners biometric verification

    SBP’s instructions on pensioners biometric verification

    KARACHI: The State Bank of Pakistan (SBP) on Friday issued instructions regarding biometric verification of pensioners.

    Prior to these instructions the SBP issued BC&CPD Circular Letter No. 01 dated February 01, 2021 and File Letter No. BC&CPD/O&SSD/BVS/5873 dated May 27, 2021 on the subject.

    The Finance Division issued a letter on December 08, 2021 on the subject of Biometric Verification Service, contents of which are self-explanatory, the central bank said.

    The said instructions of bio metric verification service are for pensioners drawing pension from AGPR Islamabad. All banks are advised to comply with the instructions contained therein.

    Further, all banks are advised to ensure widespread publicity of the above initiative through branches and other means for awareness of the pensioners.

    Mandatory biometric verification restored for pensioners
  • EOBI to launch self assessment scheme for employers

    EOBI to launch self assessment scheme for employers

    KARACHI: Employees Old-Age Benefits Institution (EOBI) has proposed a self assessment scheme under which the institution may select companies through random balloting for audit.

    EOBI Chairman Shakeel Ahmed Mangnejo said that for the convenience of employers as well as to encourage more contributions from them, a Self-Assessment Scheme is proposed in the upcoming amendment into the EOBI Act, under which, companies to be audited shall be selected by random balloting.

    READ MORE: EOBI pension to increase Rs15,000 per month

    He was addressing the SITE Association of Industry (SAI).

    EOBI Chairman announced to make EOBI Helpdesk at SITE Association functional with immediate effect and depute an officer to attend the Helpdesk at least once in a week for better coordination between registered employers and EOBI as well as to resolve issues of members of the Association.

    Expressing views on minimum wage and contribution, Chairman EOBI asked the industrialists to make payment at Rs. 13,000/- wage and clear the backlog as the EOBI fund is also facing difficulties.

    He gave the option of installments to those who are paying contributions of less than 780/- per month to clear their backlog.

    READ MORE: SITE Association demands reversing policy rate at 7%

    He further informed that EOBI is currently paying Rs50 billion per annum to more than 400,000 pensioners. Therefore, everyone should pay a contribution on time Rs13000 minimum wage in the larger interest of registered workers and suggested to report harassment cases under Section 35 of the Act – a portal for this is already active on their website.

    Replying to a query from Ex-President Saleem Parekh regarding sharing of EOBI accounts, Chairman EOBI informed that un-audited accounts up to the year 2020, together with minutes of BOT, have been placed on the website of EOBI.

    Chairman EOBI further said that companies whose contributions exceed Rs. 100,000/month would be bound to pay their contributions through EOBI’s automated Facilitation System (FS) from 1st February 2022. This is necessary to maintain an accurate record of registered workers. By March 2022, EOBI is expected to launch its mobile app as well.

    READ MORE: SITE Association signs MoU for tax return filing

    Earlier, President of SITE Association of Industry Abdul Rasheed, while welcoming the guests, said that a representative of SITE Association should be taken in the Board of Trustees of EOBI and stressed the need to re-activate EOBI Helpdesk at SITE Association as per past practice. He mentioned that collection targets issued by EOBI should be avoided and inspection of records should be done only once in a year. He also highlighted the issues being faced by pensioners, particularly widows, in getting pension.

    SVP Saud Mahmood briefed members on the Profile of Shakeel Ahmed Mangnejo who is very well qualified and highly accomplished in all his previous postings.

    Chairman of Labour Sub-Committee Abdul Kadir Bilwani on this occasion briefed the Chairman EOBI on the issues being faced by the employers and employees of SITE area which in particular included delay in issuance of pension cards, release of pending applications of pensioners for payments, relief in inspection audits given the COVID situation to help Industrialists, harassment of Industrialists by audit inspectors and unnecessary demand of company financials.

    READ MORE: SITE Association hails FBR chairman’s no bank account freezing decision

    Former president Jawed Bilwani said that industrialists are actual stakeholders of the country who generate employment, pay taxes and earn sorely needed foreign exchange. He demanded that representatives of employers in EOBI should provide evidence of having taken input from all industrial area associations before making any decision to avoid litigation.

    Former president Younus Bashir on this occasion expressed views about EOBI audit and collection target, notorious activities of labour leaders in industrial areas and stressed the need to avoid time-consuming litigation and drew the attention of EOBI Chairman towards labour representatives’ conduct in the EOBI meetings. He also suggested linking the number of employees with the power & gas consumption of the industry for a better and holistic view of operations as opposed to arbitrary assumptions.

    Dr. Javed Sheikh, Deputy Director General and Ali Muttaqi Shah, Regional Head, Nazimabad Region, EOBI, Abdul Rasheed, President of SITE Association of Industry, Saud Mahmood, SVP SAI, Muhammad Kamran Arbi, VP, Chairman of Labour Sub-Committee Abdul Kadir Bilwani, Former president Jawed Bilwani, Former president Younus Bashir, Tariq Yousuf, Sikandar Imran, Anwer Aziz, Saleem Nagaria, Muhammad Riaz Dhedhi, Azeem M. Afzal Motiwala, Touseef Ahmed, Farhan Ashrafi, Hussain Moosani, Junaid-ur-Rehman, Haris Shakoor, Shahid Ghazanfar and others were also present in the meeting.

  • Mandatory biometric verification restored for pensioners

    Mandatory biometric verification restored for pensioners

    ISLAMABAD: The government has made mandatory the biometric verification for pensioners to make withdrawal of their pension amount from banking system.

    In an office memo, the Finance Division said that the mandatory requirement of biometric verification has been restored for the pensioners, which was suspended due to COVID-19.

    READ MORE: Grant of 10% increase in pension notified

    The finance division on January 28, 2021 has made it mandatory for direct credit system (DCS) pensioners to undergo biometric verification on National Database and Registration Authority (NADRA) system through any branch of a bank every year in the months of March and October. However, the same was held in abeyance through office memo dated May 6, 2021 due to COVID-19.

    Since the normal working has been restored, therefore, it has been decided to operationalize the biometric verification for federal government pensioners with immediate effect who were issued pension from AGPR Islamabad (for military pensioner, and those who were issued pension from AGPR sub-offices and District Account Offices will be communicated separately), according to the finance division.

    READ MORE: Pensioners living abroad require presenting life certificate

    Pensioners to undergo biometric verification twice a year; rules amended
  • PM adviser stresses need to rationalize salaries

    PM adviser stresses need to rationalize salaries

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Tuesday stressed the need to rationalize salaries, allowances, and perks.

    Tarin was addressing a virtual meeting of the Pay and Pension Commission.

    The Commission is headed by Zafar Ahmed Khan and is composed of senior professionals from public and private sectors as well as serving Federal and Provincial Secretaries, AJK and GB and other senior officers of the governments also attended the meeting.

    Speaking on the occasion, the Adviser underscored that current model for pay and pension is not sustainable and there is a need to rationalize the salaries, allowances, perks etc. on the basis of performance and quality work.

    The performance of the employees may be assessed on the basis of setting targets and KPIs and simultaneously best performers may be compensated with rewards.

    The Adviser stressed for removal of anomalies in basic pay structure and suggested a uniform basic pay structure for all the organizations. He suggested for the adoption of internationally accepted practices in the matter of pensions.

    Tarin emphasized that there is a need to work out ranges for linking compensation with performance. This will ensure meritocracy in the recruitment and result in improved service delivery in the public sector.

    The Adviser further extended his full support and cooperation to the Commission.

    Chairman, Pay and Pension Commission thanked Adviser to the PM on Finance and Revenue for his keen interest and ownership of the work of the Pay and Pension Commission. He assured that the Commission will do its best to come up to the expectations of the Government and would present an actionable set of recommendations to the Government for rationalizing the pays of the public servants.

    Withholding tax rates on salary income for 2021-2022
  • Grant of 10% increase in pension notified

    Grant of 10% increase in pension notified

    ISLAMABAD: The federal government on Thursday notified the grant of 10 per cent increase in pension of all government pensioners with effect from July 01, 2021.

    The finance ministry said that the President has sanctioned an increase at 10 per cent of net pension with effect from July 01, 2021 until further orders to all Civil pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces personnel and Civil Armed Forces Personnel.

    The ministry said that the previous increase in pension would be admissible to the new pensioners who would retire on or after July 01, 2021.

    The latest 10 per cent increase in pension as will also be admissible to the pensioners who would retire on or after July 01, 2021.

    For the purpose of admissibility of increase in pension sanctioned in this O.M. the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”.

    The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

    lf the gross pension sanctioned by the Federal Government is shared with any Government in Accordance with the rules laid down in part-iv of Appendix-lll to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis.

    The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetized value of a driver or an orderly.

    The benefit of increase in pension sanctioned in this O.M. will also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts. The payment will be made at the applicable rate of exchange.

  • FBR directs timely disposal of pension, retirement cases

    FBR directs timely disposal of pension, retirement cases

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed the field formation to ensure timely disposal of pension and retirement cases otherwise the officers concerned will be responsible for any lapse.

    An official notification issued by the FBR stated that it is observed with serious concern that field formations while forwarding / submitting retirement cases / pension papers for the approval / signatures of competent Authority don’t follow the procedures of the Government and FBR’s instructions issued on the subject from time to time.

    In some cases pension papers of officers / officials are received after their date of retirement. This at times causes embarrassment to the department.

    The Pension Rules for Civil Servants stipulate the procedure and stages for disposal of pension cases (refer to S.No. 53 & 54 “A manual of pension procedures”).

    As per the aforesaid rules, action on the pension papers of a civil servant should be initiated one year before a Government servant is due to retire, so that pension may be sanctioned a month before the date of his retirement.

    Similarly, the Establishment Division’s Instructions, (conveyed to all ministries / departments, vide letter No. 330/RP/2016- WO(P) dated 12.05.2017) also emphasise that “the retirement Notifications / office orders of the retiring officers/officials shall be issued at least one year before retirement on  attaining the age of superannuation”.

    All Additional Commissioners / Deputy Commissioners, Additional Directors / Deputy Directors (HQ) are personally liable for timely submission of pension cases as per procedure / instructions issued by the Government.

    In view of the above, the officers have been directed to ensure that cases of all officers / officials under your control retiring by 30.06.2022 are processed by 15.07.2021 positively. ADCIR / DC (HQs) shall personally be held responsible for any lapse in this regard.

  • Budget 2021/2022: salary and pension increased by 10 percent

    Budget 2021/2022: salary and pension increased by 10 percent

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announce an increase of 10 percent in basic salary and pension of the government employees.

    While delivering the budget speech for the year 2021-22, Minister for Finance Shaukat Tarin announced that the increase in salaries and pensions of the federal government employees would be applicable from July 01, 2021.