The federal government’s tax adjustments in the Budget 2024-25 have resulted in a decrease in net salaries for numerous employees across both public and private sectors, despite nominal pay raises.
According to government officials, the changes in tax rates for salaried individuals have led to a situation where, even with salary increases, higher tax deductions have caused a net decrease in take-home pay.
It’s noteworthy that the Budget 2024-25 included both a salary increase for government employees and modifications to the tax rates for salaried individuals, along with a reduction in tax slabs. This has significantly impacted the salaried class.
A Grade 20 officer, speaking on the condition of anonymity, revealed that despite a monthly salary increase of Rs43,240, the new income tax deductions have reduced his take-home pay by Rs272.
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