The federal government is reviewing four different proposals for increasing salaries and pensions in the upcoming budget, according to sources in the Finance Ministry. A final decision is expected during a cabinet meeting scheduled before the federal budget is presented.
One of the main proposals suggests a 30 percent disparity allowance for government employees in Grades 1 to 16. This measure aims to reduce income gaps among lower-tier public servants.
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Another option under consideration involves a flat 10 percent increase in both salaries and pensions. This proposal is intended to provide relief from inflation, which has put pressure on household incomes.
Officials are also considering merging one of the two existing ad hoc allowances into the basic salary. This move would simplify the pay structure and reduce confusion in monthly calculations.
A separate proposal includes a 15 percent increase in disparity allowance for all employees, covering both lower-grade staff (Grades 1–16) and senior officers (Grades 17–22).
Additionally, it has been recommended that armed forces personnel be exempted from the newly launched contributory pension scheme.
Allies of the ruling coalition have reportedly urged the Finance Ministry to approve a meaningful increase in salaries. They believe this step is necessary to support public sector workers amid the rising cost of living.
The final decision will be taken during the cabinet meeting before the federal budget is officially presented
