Salary Increase 2021 in Federal Budget for Pak Govt Employees expected 20%. The proposed 20% increase in salaries of government employees has published on Saturday, May 15, 2021.
All the government’s focus is on minimizing the pension bill, sources said.
The federal government has begun considering other proposals. Similarly, including a 15 to 20 percent increase in the interim relief in the salaries and pensions of government employees. So, the freezing of the basic salary for pensions for a period of 25 years.
Salary Increase 2021 in Federal Budget Pak Govt Employees
However, the Ministry of Finance said that they have hired the services of a private company of international repute to bridge the wide pay gap. The employees of different ministries and departments have disparities in the salaries. So, it is necessary to rationalize pay and pension reforms. Which will start its work from Monday.
A company is reviewing the entire pay and pension structure. After that, it will submit a comprehensive study to the government in accordance with international best standards.
In addition, to study pay and pension reforms, this private company will take 6 months. with recommendations from subgroups set up by the Pay and Pension Commission and a short-term, medium-term reform of the pay and pension system in collaboration with a private firm. Will suggest long-term and long-term plans.
Federal /budget 2021:
The federal budget has expected for the next fiscal year 2021-22 early next month. The average salary increase in 2021 has expected around 20%. However, a private company will continue to work further.
In other words, it has proposed to monetize the travel allowance. So, it will work for Grade 17 to 19 employees as well as Grade 20 to 22 officers. A circular issued on March 3, 2021, after the protest of government employees. So the govt has given a 25% disparity reduction allowance to reduce the gap in the salaries of government employees.
Pay and Pension Formula:
However, an increase in the salaries of government employees is necessary. So, the formula of reducing the pay gap of government employees has planned. Therefore, the salaries and benefits of the employees of the institutions and departments which are much higher than before will be reduced. Will be increased.
Sources said that the entire focus of the government is on minimizing the pension bill, for which a proposal to introduce a contributory pension system for newly recruited employees in the public sector as well as in the private sector is also under consideration. ۔
Above all, the Bank of the world is conducting the contributory pension system study. Therefore, a separate pension contributory fund for this system is also under consideration. A World Bank will provide an initial amount. Seed Money
In addition, there is a possibility of various proposals in the laws regarding salaries and pensions of government employees, under which it is proposed to amend the laws and freeze the basic salary of government employees for pensions for a period of 25 years.
The government has also put forward a proposal that the basic salary of government employees will not increase after 25 years of service even if their service lasts for 40 years, i.e. the amount of retirement and pension is only 25 years of service. Will be found on the basis.
The proposed formula is for people to retire after 25 years of service. So, the basic salary should not be higher. The people’s pension and commutation will also be reduced with this formula. The burden on the exchequer will be less in the times to come.
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Average Salary and IMF:
The budget proposes a 15-20% increase in salaries and pensions. IMF approves an increase in salaries of government employees in the next federal budget. It does not oppose proposals for increase Including working on a number of proposals to make pay and pension realistic.
Finance Secretary Kamran Ali Afzal when contacted by Jang correspondent, confirmed that the IMF is not opposed to salary increases and the federal government has different views on this regard. According to sources, the government has started considering other proposals, including a 15-20% increase in interim relief in salaries and pensions of government employees and freezing of basic pay for pensions for a period of 25 years.
Private Company Services:
The services of a private company of international repute have procured to bridge the wide pay gap between the employees of various ministries, divisions, and departments and to rationalize pay and pension reforms. Safar of subgroups In collaboration with Shat and a private firm, it will propose a short-term, medium-term, and long-term plan to reform the pay and pension system.
The federal budget for the next financial year 2021-22 has expected in the second week of June. A proposal for temporary relief of 15 to 20 percent in the salaries of government employees is under consideration in the next budget till the coming of the Lok Sabha.
Sources said that like the officers of grade 20 to 22, the travel allowance for the employees of grade 17 to 19 will also be increased. Monetization has also suggested. The increase in the salaries of government employees will be based on the formula of reducing the pay gap in government employees and the salaries and benefits of the employees of the institutions and departments which are much higher than before will be increased less.
The entire focus of the government is on minimizing the pension bill. For this, a proposal to introduce a contributory pension system for the newly recruited employees. The public sector as well as in the private sector is also under consideration.
Buttery is studying the pension system, sources said. So, a proposal to set up a separate pension contributory fund for the system is also under consideration. For which the World Bank may also provide initial money (seed money). There are also possibilities for various amendments to the laws regarding salaries and pensions of employees