The federal cabinet green signals the budget proposals for the fiscal year 2023-2024, increasing the salaries of government employees up to 35%.
The decision has been taken on the recommendations of several cabinet members amid rising inflation that has caused immense difficulties for the poor segments of society.
The government has also approved the proposal to increase pension by 17.5% for the next fiscal year 2023-24.
According to the sources, the salaries for employees of grades 1-16 will be increased by 35% while those above grade 17 will get a 30% increase.
The government had proposed setting also set the minimum wage to Rs32,000.
The Pay and Pension Commission had recommended the government consider a 100% increase in medical and conveyance allowances for government employees along with a 10% increase in ad hoc allowances.
The government will pay the debts of widows up to one million through House Building Finance Corporation (HBFC) while the deposit limit in national savings accounts for martyrs is being increased from Rs 5 million to Rs7.5 million.
Likewise, the limit for Behbud Savings Certificate has also been increased from Rs 5 million to Rs7.5 million.
Similarly, the government also announced to enhance in the allocation of the Benazir Income Support Programme (BISP) by Rs50 billion to Rs450 billion.