KP govt salary and pension budget set to hike up to Rs871 billion annually

PESHAWAR: Following Khyber Pakhtunkhwa’s recent decision to increase salaries and pensions for provincial employees, the provincial budget for salaries and pensions is anticipated to escalate to Rs871 billion annually. This substantial increase is expected to impact the province’s Annual Development Programme (ADP).

Reportedly, the KP government has completed preparations to increase the salaries of 650,000 provincial employees. An additional annual financial burden of Rs 75 billion is expected on the provincial treasury.

In light of recommendations prepared by a committee chaired by the Provincial Advisor on Finance Muzamil Aslam, the Finance Department has compiled a summary and forwarded it to the KP Chief Minister Ali Amin Gandapur for approval. According to the summary, it is recommended to provide a 25 per cent ad hoc relief allowance on salaries from Grade 1 to Grade 16, and a 20 per cent ad hoc relief allowance for provincial officers from Grade 17 to Grade 22, based on their basic salaries.

Furthermore, the committee under the leadership of the Advisor on Finance has also proposed a 15% increase in pensions for retired government employees and recommended increasing the secretariat allowance to Rs18,000 .

According to the Finance Department’s summary, the proposed increases of 20 per cent to 25 per centin salaries and 15 per cent in pensions for provincial government employees could result in an additional annual burden of 75 billion rupees on the provincial treasury. The summary of salary increases is expected to be approved by the provincial cabinet in the coming days.

Provincial Finance Advisor Muzamil Aslam confirmed last day that the province had verified a 20 per cent to 25 per cent ad hoc relief allowance on basic salaries for its employees and a 15 per cent increase in pensions.