Every year the government employees eagerly wait for budget announcement as during this time the government increases their salaries keeping in view various economic factors.

According to sources in the Ministry of Finance, a preliminary proposal of 15 to 20 percent increase in the salaries of government employees has been made in the upcoming federal budget. This increase is being done keeping in mind inflation and other economic challenges so that the financial condition of government employees can improve.

A significant increase in the monetization policy of the bureaucracy has also been suggested. For officers up to grade 20, monetization has been proposed to be increased from Rs65,000 to Rs150000. Similarly, monetization for Grade 21 officers has been recommended to be increased from Rs75,000 to Rs120,000. A proposal to increase monetization from Rs95,000 to Rs 155,000 for a Grade 22 officer is under consideration.

A 10% increase in the salaries of employees of grades 1 to 22 will cost the government about Rs80 billion. Apart from this, a 200pc increase in medical and conveyance allowance is also being demanded for the employees of grades 1 to 16. Scale 1 to 16 employees are getting Rs1,800 conveyance allowance and Rs1,500 Medical Allowance while Grade 17 and 18 officers are currently getting Rs5,000 conveyance allowance. A preliminary proposal of 200pc increase in conveyance allowance has been given for officers of grades 17 to 18.

It has also been proposed to continue disparity allowance to reduce the disparity in salaries of federal and provincial employees. Employees in scale 1 to 16 got disparity allowance of 25 and 15 percent in 2021 and 2022, and it is recommended to retain this allowance in the upcoming budget as well.

All these proposals are still in the initial stages and the final decision on them will be taken in consultation with Prime Minister Shehbaz Sharif, Finance Ishaq Dar and the other Cabinet members. It is expected that this budget will provide significant facilities for government employees to improve their financial condition.