Salaries & pensions: 10% ad hoc relief in basic pay for public servants

Pensions up 10%; minimum wage raised to Rs15,000; measures to additionally cost national kitty Rs125 billion

ISLAMABAD: The federal government has announced a 10 per cent ad hoc relief allowance to be added to the basic salary of all public sector employees as part of the Federal Budget 2017-18 presented in parliament on Friday.

The government also announced a 10 per cent raise in pensions of civil servants and increasing the minimum wage from Rs14,000 to Rs15,000.

The new ad hoc allowance will be applied to the basic salary from first of July this year accounted after merger of similar allowances given to armed forces personnel in 2009 and 2010 and to the government employees in 2010.



Finance Minister Ishaq Dar, who presented the sitting government’s fifth budget, termed the merger of 2009 and 2010 allowances into basic pay of civil servants “a significant move” owing to what he said its accumulative impact on the treasury bill under the head of salaries and pensions.

In recognition of sacrifices by the armed forces, this increment would be in addition to special allowances they are already entitled to, the minister said in his budget speech. The allowances announced for the armed forces after the launch of Zarb-e-Azb would continue, he added.

According to Dar, Ardali allowance is being raised from Rs12,000 to Rs14,000, and constant attendance allowance from Rs3,000 to Rs7,000.  The allowances for burial and dead-body shifting are being jacked up from Rs1,600 to Rs4,800 and from Rs5,000 to Rs15,000 respectively.



Similar increases will be applicable to officials of the Pakistan Navy. While most of these measures have been announced for the armed forces, civilian employees of lower grades of up to BPS-05 have been given a little share too. They have been exempted from a 5.0 per cent deduction from rent allowance.

The announced measures will additionally cost the national kitty Rs125 billion.

Scheme for families of martyrs

The government has decided to launch a new scheme in National Savings where families of martyrs from the armed forces, police and other law-enforcement agencies will be given profits. Dar, in his speech, did not elaborate contours of the proposed scheme, which has been made part of the finance bill presented in parliament.

Special persons

At least 2.0 per cent quota for handicaps in government jobs will now be applicable to all private companies listed under the companies act. Special persons will also be entitled to investing in Behbood Savings Certificates offered to pensioners and widows.

Bait-ul-Mal

The government has announced allocation of Rs6 billion for Bait-ul-Mal, an official charity-cum-welfare programme it runs for the destitute. The new allocation is 50 per cent higher than last year’s Rs4 billion.

Scheme for widows

The PML-N government has revived a special scheme for widows that it had started back in 1999 before the Nawaz Sharif’s government was toppled in a military coup. Under this scheme for widows, the government will wave off House Building Finance Corporation mortgages of up to Rs500,000.

Overseas Pakistanis

The finance minister has announced the launch of a $1 billion non-convertible special bond for overseas Pakistanis. The Capital Development Authority (CDA) has also been asked to launch a special residential sector in Islamabad for the Pakistanis living abroad.