“Government Stands Firm on Salary and Pension Limits, Prioritizing Fiscal Responsibility”

Islamabad: “Government Stands Firm on Salary and Pension Limits, Prioritizing Fiscal Responsibility”. In a significant move, the government has restated its commitment to refrain from approving additional salary and pension increases beyond those outlined in the fiscal year 2024 quarter one (Q1). This assurance aligns with the Memorandum of Economic and Financial Policies, a key component of the first review of the Stand-By-Arrangement reached with the International Monetary Fund (IMF) staff.

Despite this commitment, government clerks expressed their concerns through a protest on January 18, 2024, advocating for a 10% increase in the disparity reduction allowance and a 70% increase in medical, conveyance, and house allowances for grades 1 to 16.

The All Government Employees Grand Alliance (AGEGA) Chief Coordinator conveyed the alliance’s resistance to pension amendments and the provision of disparity allowances for employees in grades 1–16.

The proposed pension amendments include federal government employees being entitled to a gross pension set at 70% of the average pensionable emoluments drawn during the last thirty-six months of service prior to retirement. Employees may choose early retirement after 25 years of service, subject to a three percent per year reduction in gross pension from the retiring year until the age of superannuation.

Family pensions post-death or disentitlement of the spouse would be admissible to the remaining entitled family members for a maximum of 10 years. In the case of Shuhada Pension, the entitlement for family members would extend to 20 years after the death or disentitlement of the spouse.

More From Daily The Destination: Nawaz Sharif’s Vision: Empowering the Nation for Self-Sufficiency

Additionally, federal government employees would be allowed to commute a maximum of 25% of their gross pension at the time of retirement, compared to the existing 35%, subject to terms and conditions prescribed by the federal government. The Finance Division has moved a summary for pension amendments, seeking comments from relevant divisions on the proposed changes.