The Ministry of Finance has officially announced an increase in the salaries and pensions of federal government employees, providing significant financial relief.
As per the notification, employees in grades 1 to 16 will see a 25% salary increase, while officers in grades 17 to 22 will receive a 20% raise. This adjustment will take effect from July 1, 2024, and will be applied to the employees’ basic pay.
Additionally, federal government retirees will benefit from a 15% increase in their pensions. This increment applies to both civil and armed forces retirees. Notably, employees retiring on or after July 1, 2024, will also be eligible for this pension increase.
The 15% pension hike will be calculated on the net pension of retired employees. However, the notification clarifies that ad hoc relief will not be included in the pension and gratuity calculations.
Furthermore, this increase will not impact the determination of house rent allowances for employees.
Federal employees posted abroad will not receive the Ad Hoc Relief Allowance during their overseas assignment. However, this allowance will be applicable upon their return from international postings or deputations.
