Pakistan Budget 2024-25: A Salary Increased Chart

The Government of Pakistan recently unveiled the federal budget for the fiscal year 2024-25, which features significant measures aimed at enhancing the financial well-being of its civil servants and pensioners. Notably, the government announced a substantial salary increase of 25% for employees in Grades 1 to 16 and 22% for those in Grades 17 to 22, alongside a 15% increase in pensions. These measures reflect the government's commitment to addressing the economic challenges faced by public sector employees and retirees amidst rising inflation and cost of living.

 

Context and Rationale

Over the past few years, Pakistan has experienced economic turbulence marked by high inflation, currency devaluation, and fiscal constraints. These economic pressures have eroded the purchasing power of civil servants and pensioners, who rely on their salaries and pensions to meet daily expenses. The salary and pension increments in the 2024-25 budget are seen as necessary steps to alleviate some of the financial burdens faced by these groups.

 

Salary Increases: Grades 1 to 16

The government's decision to increase salaries by 25% for Grades 1 to 16 employees is particularly significant. This group constitutes the majority of the public sector workforce, including clerks, support staff, and junior officers. These employees often struggle to make ends meet due to their relatively lower pay scales. By implementing this substantial raise, the government aims to improve the living standards of these workers, ensuring they can better support their families and cope with everyday expenses.

 

This increase also aims to boost the morale and productivity of lower-grade employees, who are crucial to the day-to-day functioning of government departments. Enhanced financial security is expected to reduce absenteeism and increase job satisfaction, leading to more efficient public service delivery.

 

Salary Increases: Grades 17 to 22

For higher-grade employees, Grades 17 to 22, the government has announced a 22% salary increase. This group includes senior officers, managers, and professionals who play a pivotal role in policy-making, administration, and the implementation of government initiatives. While their salaries are relatively higher compared to lower-grade employees, the cost of living and inflation have also significantly impacted them.

The 22% raise is designed to retain talent within the public sector, discouraging these skilled professionals from seeking more lucrative opportunities in the private sector or abroad. By offering competitive compensation, the government aims to maintain a robust and effective civil service capable of managing the country's administrative and developmental needs.

 

Pension Increase

In addition to salary hikes, the government has also increased pensions by 15%. Pensioners, particularly those on fixed incomes, have been severely affected by inflation. The rising cost of healthcare, utilities, and essential goods has made it increasingly difficult for retirees to sustain a reasonable standard of living. The pension increase is a recognition of their years of service and a step towards ensuring their financial stability and dignity in retirement.

 

Economic Implications

While the salary and pension increases are welcomed by public sector employees and retirees, they also have broader economic implications. The government will need to allocate additional resources to fund these increments, which may strain the national budget. However, this increase in disposable income for a significant portion of the population could stimulate economic activity by boosting consumption.

 

Conclusion

The 2024-25 budget reflects the Government of Pakistan's effort to balance fiscal responsibility with social welfare. By significantly increasing salaries for civil servants and pensions for retirees, the government acknowledges the critical role these individuals play in the functioning and development of the country. These measures are expected to improve the financial well-being of public sector employees and pensioners, enhance public service delivery, and contribute to overall economic stability.

Summary of Salary Increases as per Budget Speech 2024-25

Sr. No	Basic Pay Scale of Employees	Salary Increase as per Budget Speech	Salary Increase as per Budget Documents
1	BPS-01 to BPS-16	25%	25%
2	BPS-17 to BPS-22	20%	22%

Table of Minimum and Maximum Increase in Salaries

Basic Pay Scale	Initial Stage	Min Increase	Last Stage	Max Increase	Ave Increase
BPS-01	13,550	3,388	26,450	6,613	5,000
BPS-02	13,820	3,455	28,520	7,130	5,293
BPS-03	14,260	3,565	31,660	7,915	5,740
BPS-04	14,690	3,673	34,490	8,623	6,148
BPS-05	15,230	3,808	37,730	9,433	6,620
BPS-06	15,760	3,940	40,960	10,240	7,090
BPS-07	16,310	4,078	43,610	10,903	7,490
BPS-08	16,890	4,223	46,890	11,723	7,973
BPS-09	17,470	4,368	50,170	12,543	8,455
BPS-10	18,050	4,513	53,750	13,438	8,975
BPS-11	18,650	4,663	57,950	14,488	9,575
BPS-12	19,770	4,943	62,670	15,668	10,305
BPS-13	21,160	5,290	67,960	16,990	11,140
BPS-14	22,530	5,633	74,730	18,683	12,158
BPS-15	23,920	5,980	83,320	20,830	13,405
BPS-16	28,070	7,018	95,870	23,968	15,493
BPS-17	45,070	9,014	113,470	22,694	15,854
BPS-18	56,880	11,376	142,090	28,418	19,897
BPS-19	87,840	17,568	178,440	35,688	26,628
BPS-20	102,470	20,494	196,130	39,226	29,860
BPS-21	113,790	22,758	217,670	43,534	33,146
BPS-22	122,190	24,438	244,130	48,826	36,632

This table includes the initial and last stages of salary, along with the corresponding minimum, maximum, and average increases in salary for each Basic Pay Scale (BPS) from 01 to 22 as per the Budget Speech 2024-25