The Finance Ministry reportedly has not agreed to the proposal of allowing merger of 50 percent ad hoc relief allowance into the basic pay scale of the federal government employees due to fiscal constraints, it was learnt on Thursday. Sources in the Finance Ministry said different proposals were given by the Pay Committee to Ministry and one of them also requested the merger of 50 percent increase, allowed to the employees during previous government, into basic pay. However, Finance Ministry didn't support the proposal because of fiscal space.
They said the Finance Ministry may allow an 8 to 9 per cent increase in the basic pay of federal government's employees as this will have a nominal impact on the budget after the merger of 7.5 per cent ad-hoc relief allowance given to the federal government employees on running basic pay from July 01, 2015.
The federal government started working on the increase of pay and pensions of government employees and Pay Committee's recommendations is said to be working on pay scales' revision of employees. There was also a proposal to merge the two or three ad-hoc relief allowance and revise basic pay scales of employees. There is a possibility of over 10 percent increase in the pensions of retired employees. Sources in the Ministry stated that a final decision is yet to be taken in a meeting.