The federal government has excluded any increase in wages and pensions for public sector employees in the next budget, confirmed the Minister of Finance Muhammad Aurangzeb in a written response to the National Assembly.
During questions, Aurangzeb said that no proposal was being studied to revise the remuneration scales, allowances or pensions for government employees in the next fiscal year.
However, he mentioned that the government examines the limits of the ceiling and hiring for workers in the public sector.
The announcement comes at a time of the increase in inflation, many government employees hoping for financial relief in the upcoming budget.
The decision should arouse the concern of public sector workers who have trouble with the increase in the cost of living.
While the government continues to assess its financial policies, the lack of salary increase could add to the economic pressure on employees. The upcoming budget will probably be monitored by various stakeholders while discussions on economic measures take place.
Earlier this month, the government announced significant changes in retirement calculations, by introducing new conditions and restrictions.
A notification published Wednesday said that the pension will now be calculated according to the average salary of the last 24 months, rather than the final salary. In addition, employees will no longer be allowed to receive several pensions.
According to the notification, the new calculation will not apply to employees opting for voluntary retirement. In addition, additional increases during the last year of service will not be included in the average calculation of pensions.
The Government has also revised the pension consciousness mechanism for existing retirees, ensuring that family pensions will now be calculated on the basis of net retirement values.