The government has announced to introduce new Basic Pay Scales (BPS) for government employees by merging their previous increments "to carry forward 15 percent raise in basic pay". Under the new BPS structure, allowances including medical and conveyance would be doubled while house rent would be raised up to 134 percent, costing Rs 25.5 billion in next fiscal year.
The announcement was made by Federal Secretary Finance, Naveed Ahsan while responding to a question during post budget news conference here on Tuesday.
He informed the media persons that the real increase in salary of government employees would be 23 to 30 percent in which low scale officials would be greater beneficiaries.
As per new pay structure, Naveed Ahsan said there would be almost 100 percent increase in various allowances including medical and conveyance.
He further said that house rent, which was frozen in 1991, would also be restored in line with the new basic salaries, showing an increase of 134 percent.
When asked about the implementation of the newly announced scheme, secretary finance said notification in this regard would be issued very shortly.
However, he made it clear that the new pay scales would not be applied to public sector corporations. Those, who have their own board of directors, would send their recommendations to finance division for approval, he added.
Moreover, the government has also increased the minimum wage from Rs 2,500 to Rs 3000. Similarly, the government made a 10 percent increase in pension, increasing the minimum pension from Rs 700 to Rs 1000.
A special scheme is also being launched for widows and orphans of government employees who borrowed up to Rs 100,000 from House Building Finance Corporation (HBFC) so that their loans can be liquidated.
The recommendations were earlier finalised by Pay and Pension Committee, headed by Moeen Afzal.
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