No further salary and pension increases for govt employees

WEB DESK: In a significant development, the government has reaffirmed its commitment to not grant any additional increases in salaries and pensions beyond those outlined in the fiscal year 2024 quarter one (Q1).

This assurance comes in line with the Memorandum of Economic and Financial Policies, a part of the first review of the Stand-By-Arrangement, agreed upon with the International Monetary Fund (IMF) staff.

The relevant documents were released this Sunday, shedding light on the government’s stance on fiscal responsibility.

Despite this commitment, government clerks voiced their concerns through a protest held on January 18, 2024. The clerks advocated for a 10 per cent increase in the disparity reduction allowance and a 70 per cent increase in medical, conveyance, and house allowances for grades 1 to 16.

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

The Chief revealed that the Finance Division had moved a summary for pension amendments, seeking comments from the Establishment Division, Ministry of Interior, and Law and Justice Division on the proposed changes.

According to the proposed amendments, federal government employees would be entitled to a gross pension set at 70 per cent of the average pensionable emoluments drawn during the last thirty-six months of service prior to retirement, including penalties for early retirement.

The proposal also outlines that an employee may choose early retirement after completing 25 years of service, subject to a three per cent 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 period 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.

Moreover, in the case of disabled or special children of a pensioner, the family pension would remain admissible for the lifetime of such children.

Another notable point is the provision allowing federal government employees to commute a maximum of 25 per cent of their gross pension at the time of retirement, compared to the existing 35 per cent, subject to the terms and conditions prescribed by the federal government.

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