Budget 2019-20: 10% increase in salaries, pension of federal employees; minimum wage set at Rs17,500

ISLAMABAD – The federal government has proposed an increase of 10 percent in salaries and pensions of the government employees from Grade 1-16, including armed forces employees, in Budget 2019-20.

However, there is no increase in salaries for civilian government employees from grade 21 to 22 proposed in the budget for next fiscal year.

The budget outlay is Rs7,022 billion which is 30 per cent higher than the last year.

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In the budget for FY2019-20, a 5 per cent ad hoc relief is proposed for government employees from grade 17 to 20.

Minimum wage has been set at Rs17,500 while pensions for all government employees will be increased by 10 per cent.

Meanwhile, ministers have agreed to voluntary 10 per cent cut in salaries.