Cabinet gives nod to 15% increase in salaries of govt employees

The federal cabinet on Friday approved a 15% increase in the salaries of the federal government employees and a 5% increase in pensions, sources said. 

The decision comes less than an hour before the Prime Minister Shehbaz Sharif-led government is set to present its first budget.

Federal Information Minister Marriyum Aurangzeb took to Twitter and said: "The Prime Minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet."

She added that the adhoc allowances have also been merged into the basic pay.

Sources privacy to the matter said that the recent rise in salaries of the government employees will put a burden of Rs71.59 billion on the national exchequer.

The federal cabinet on Friday met to review the budget proposals. Following the approval of the cabinet, the budget will be presented in the National Assembly by Finance Minister Miftah Ismail today.

A day earlier, Ismail announced that Pakistan and IMF agreed to increase the salaries of employees. He, however, said that the salaries of government employees will be increased as per the economic situation of the country.