The federal government has decided not to raise salaries or pensions for public sector employees in the next budget, Finance Minister Muhammad Aurangzeb confirmed in a written response to the National Assembly.
During the question hour, Aurangzeb stated that there are no plans to revise pay scales, allowances, or pensions in the upcoming fiscal year. However, he mentioned that the government is reviewing hiring limits and the financial ceiling for public sector employment.
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The announcement comes amid soaring inflation, leaving government employees disappointed as they were expecting some financial relief. With the rising cost of living, the decision is likely to raise concerns among workers struggling to manage household expenses.
Meanwhile, the government has also introduced significant changes to pension calculations. According to a recent notification, pensions will now be calculated based on the average salary of the last 24 months instead of the final salary. Additionally, employees will no longer be allowed to receive multiple pensions.
The revised policy does not apply to those opting for voluntary retirement, while incremental raises in the final year of service will not be included in pension calculations. The government has also adjusted the pension increment mechanism, ensuring that family pensions will be based on net pension values.
