K-P employees get 35% salary boost

The caretaker government of Khyber-Pakhtunkhwa (K-P) has followed the lead of the federal government and announced salary increases for provincial government employees in the fiscal budget of 2023-24.

The raise amounts to 35 percent for employees up to grade 16, while those above grade 16 will receive a 30 percent raise. Additionally, pension payments have been increased by 17.5 percent.

Various allowances have also seen an increase: travel allowance for government employees has been raised by 50 percent, special conveyance allowance for employees with disabilities has been doubled, and the orderly allowance has been increased from Rs14,000 to Rs35,000.

Moreover, the K-P government has decided to raise the deputation allowance by 50 percent and the secretariat performance allowance by 100 percent. The budget also includes the provision of an executive allowance for officers on OSD (Officer on Special Duty) status.

The annual development program for the fiscal year 2023-24 has been set at Rs1122.385 billion. Out of this amount, Rs92.112 billion has been allocated for the settled districts, while Rs20.263 billion has been allocated for the newly merged tribal districts. Additionally, Rs29.677 billion will be spent on the adhoc relief in salaries, and Rs5.15 billion will be spent on pensions.

The caretaker government has chosen to maintain the taxation policy of the previous PTI government, with no tax increases for the next four months. However, property tax exemptions for houses measuring five marlas and below have been withdrawn. As a result, owners of three marla houses will now be required to pay property tax.

In Peshawar, the provincial headquarters, the first category houses above three marlas and up to five marlas will be taxed at Rs1,500 per year, the second category at Rs1,300, and the third category at Rs1,100. In divisional headquarters, the property tax rate will range from Rs500 to Rs800 per year, while in district headquarters, it will range from Rs500 to Rs600 per year.

For category A houses measuring five to ten marlas in the provincial capital of Peshawar, the property tax will be Rs2,500, Rs2,400 for category B, and Rs2,200 for category C. In divisional headquarters, the tax amount will range from Rs1,100 to Rs1,400, and in district headquarters, it will be Rs1,200 for houses measuring five to ten marlas.

For category A houses measuring ten to fifteen marlas, the property tax in provincial headquarters will be Rs3,300, Rs3,100 for category B, and Rs3,000 for category C. In divisional headquarters, the tax amount will range from Rs1,600 to Rs3,000, and in district headquarters, it will be Rs1,500 to Rs1,600 per annum.

Houses up to 18 marlas in provincial headquarters will be taxed at Rs4,800 for category A, Rs4,700 for category B, and Rs4,500 for category C.

Published in The Express Tribune, June 21^st, 2023.