No Increase in Salary and Pension For Government Employees

Presently, the nation of Pakistan finds itself ensnared in intricate economic circumstances of a challenging nature. The entirety of extant economic strategies within the confines of Pakistan’s economic landscape is subject to the pervasive influence of the International Monetary Fund (IMF).

In a momentous juncture, the governmental authorities have unequivocally affirmed their determination to eschew any augmentation in remuneration and retirement stipends beyond the prescribed limits delineated in the initial quarter of fiscal year 2024 (Q1).

This steadfast commitment aligns seamlessly with the stipulations outlined in the Memorandum of Economic and Financial Policies, an accord forged during the inaugural evaluation of the Stand-By-Arrangement, with representatives of the International Monetary Fund (IMF) being party thereto.

Ergo, the pronouncement of a moratorium on pension increments is an outcome of the pact with the IMF. These recent developments have engendered disquietude among a myriad of former government employees.

Relevant documentation unveiled on a Sunday offers elucidation on the government’s stance regarding fiscal responsibility.

Schools to Remain Close for 8 Days

Despite this solemn undertaking, a demonstration ensued on January 18, 2024, wherein government clerks voiced their dissent. The clerical cohort advocated for a 10% escalation in the disparity reduction allowance and a 70% amplification in medical, transportation, and housing allowances for individuals in grades 1–16.

As reported by the Business Recorder, the Chief Coordinator of the All Government Employees Grand Alliance (AGEGA) conveyed the alliance’s resistance to alterations in pensionary provisions and the imposition of disparity allowances for those in grades 1-16.

The Chief intimated that the Finance Division had dispatched a synopsis of pension revisions, soliciting input from the Establishment Division, Ministry of Interior, and Law and Justice Division regarding the proposed modifications.

About the suggested amendments, employees of the federal government would be entitled to a gross pension equivalent to 70% of the average pensionable emoluments earned during the thirty-six months antecedent to retirement, augmented by penalties for early retirement.

The blueprint also delineates the option for an employee to opt for early retirement after rendering 25 years of service, subject to a 3% reduction in gross pension from the retiring year until reaching the age of superannuation.

Family pensions, ensuing upon the demise or disqualification of the spouse, would be accessible to the remaining eligible family members for a maximum duration of ten years. In the case of the Shuhada Pension, eligibility for family members would be prolonged for 20 years after the spouse’s demise or disqualification.

Furthermore, in scenarios wherein pensioners have offspring with disabilities or special needs, the family pension would endure for the duration of their lifetimes.

An additional salient provision permits federal government employees to commute up to 25% of their gross pension at the point of retirement, in contrast to the extant 35%, contingent upon the terms and conditions stipulated by the federal government.

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