Budget 2024-25: Govt likely to end medical & house allowance for govt employees

As all eyes are on Federal Budget 2024-25, there are reports suggesting salary increase for government employees.

ISLAMABAD: Government of Pakistan decided to discontinued house rent and medical allowance to employees amid austerity measures, here on Thursday.

According to the media reports, federal government is mulling to end subsidies for employees from 17 to 22 grade officers.

Sources familiar with development, government has approved to end subsidies provided to customs officials.

The house rent allowance and medical allowance given to custom officials will be discontinued as they were being provided benefits from the common pool fund.

The Federal Board of Revenue (FBR) ordered to end of subsidies and benefits from the common pool fund.

The negotiations will be held with the International Monetary Fund (IMF) next month. Discussions will be held on unnecessary subsidies for government employees and pension reforms.

Expected Salary Increase in Budget 2024-25

As all eyes are on Federal Budget 2024-25, there are reports suggesting salary increase for government employees.

It claimed that there will be around 15 percent salary increase and a 10 percent pension hike. However, these reports remain unverified, with no official statement from the government regarding the salary increase in the 2024-25 budget.