Mar 9, 2010

Pay and Pension Commission recommends up to 70% pay raise

ISLAMABAD: The Pay and Pension Commission (PPC) has decided to recommend the government increase the salaries of its employees by 30%, 40%, 50%, 60% or 70% with effect from July 1, 2010, a senior official at the Ministry of Finance told Daily Times on Thursday.

The PPC’s recommendations would be implemented from the next fiscal year 2010-11 and it would be officially announced at the time of the annunciation of the 2010-11 budget on May 15, 2010, the official said.

The PPC, headed by former State Bank of Pakistan (SBP) governor Dr Ishrat Hussain, is expected to conclude its deliberations on the pay and pension reforms today (Friday). The commission would be submitting its recommendations to the government before the March 23, 2010 deadline issued by the government in this regard.

The conveyance allowance for employees from BS 1 to 16 is being recommended at Rs 2,800 or Rs 3,000, keeping in view the unprecedented increase in public transport fares. This conveyance allowance would be recommended at Rs 5,000 for the officers who are not entitled to an official transport facility.

The medical allowance for the employees from BS 1 to 16 would be probably increased from Rs 500 to Rs 1,000 per month.

The official said that under the pension reforms for the next fiscal year, the PPC will most likely recommend a 25 percent increase in the pensions for the government employees who retired before June 30, 1997. The PPC would most likely recommend a 20-percent increase for those government employees who retired on or after July 1, 1997, he added.

Daily Times
Report By: Sajid Chaudhry

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