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.
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Pakistan announces early salary, pension for Government employees before Eid
In a recent announcement, the Pakistani government has decided to disburse the salary and pension payments for government employees ahead of Eid-ul-Fitr this month.
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Finance ministry announces salary increase, promotions of government employees
ISLAMABAD: The Finance Ministry on Wednesday announced special incentives for federal government employees in grade-01 to grade-15.
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FBR issues salary return form for tax year 2022
The Federal Board of Revenue (FBR) has taken a significant step in facilitating tax compliance by issuing income tax return forms specifically tailored for salaried individuals for the tax year 2022.
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Punjab announces 15% increase in salary
LAHORE: Punjab government has announced an increase of 15 per cent for employees of provincial government.
The Punjab government on Wednesday announced its budget for fiscal year 2022/2023. The finance minister announced an increase of 15 per cent for employees of provincial government. Besides, the provincial government also increased 5 per cent for pension.
The finance minister said that provincial government was well aware of high inflation and difficulties of masses.
About the employees of provincial government, the finance minister said the employees were committed to their jobs.
The minister also announced a special allowance of 15 per cent to the salary of employees of grade 1 to grade 19.
Further, the government also increased the minimum wage from Rs20,000 to Rs25,000 per month.
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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
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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.
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Notification issued for implementing 15% salary increase
ISLAMABAD: The finance ministry has notified an office memorandum for the increase of 15 per cent in the salary of federal government employees from March 01, 2022.
According the memorandum dated February 23, 2022, the employees of the federal government will get disparity reduction allowance at 15 per cent of the basic pay scales 2017 with effect from March 01, 2022.
The federal government on February 10, 2022 announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.
READ MORE: Federal government announces 15% increase in salaries
The latest memorandum stated that the allowance shall be admissible to civil employees in BPS-1 to BPS-19 of the federal government, (including employees of the federal secretariat, attached departments and subordinate offices) who have never been allowed additional allowance / allowances equal to or more than 100 per cent of the basic pay (whether frozen or not) or performance allowance subject to the following conditions:
READ MORE: Withholding tax rates on salary income for 2021-2022
a. This allowance will not be admissible to the employees of the organizations who are drawing additional allowance/allowances equal to or more than 100 per cent of the basic pay (whether frozen or otherwise);
b. This allowance will be frozen at the level drawn on March 01, 2022;
c. This allowance will be subject to Income Tax;
d. This allowance will be admissible during leave and entire period of LPR except during extra ordinary leave;
e. This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent;
READ MORE: Employers to deduct tax on salary income
f. This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;
g. This allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad;
READ MORE: Tax on salary income of earlier year
h. This allowance will be admissible during the period of suspension;
i. The term ‘basic pay’ will also include the amount of personal pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.
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Federal government announces 15% increase in salaries
ISLAMABAD: The federal government on Wednesday announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.
A statement issued by the Finance Division, an arm of the Finance Ministry, said that the government had decided to give 15 per cent disparity allowance on running basic pay to less privileged employees from BS-1 to BS-19 with effect from March 01, 2022. The above package is also recommended to the provinces for adoption from their own funds.
READ MORE: Withholding tax rates on salary income for 2021-2022
Further, a summary for timescale promotion has been initiated by the Finance Division to mitigate the hardship being faced by employees stuck in the same grade for a long time.
READ MORE: Pakistan’s fiscal deficit contracts at 2.1% in 1HFY22
The matter of upgradation of posts on the analogy of Khyber Pakhtunkhwa will be decided based on the findings of the study being conducted by MS Wing of the Establishment Division by end April 2022.
READ MORE: Employers to deduct tax on salary income
Further, the merger of Adhoc Relief/Allowances into pay will be decided on report of pay and pension commission and will be merged in basic pay as per agreement.
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Salary income explained by tax ordinance
KARACHI: Section 12 of Income Tax Ordinance, 2001 explained the salary income for imposition of tax. Any amount received as salary by employees from employers is chargeable to tax.
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