ISLAMABAD, Pakistan: Under the budget for fiscal year 2017-18, the federal government on Friday announced a major relief for the government servants and the pensioners, incurring a cost of Rs 125 billion.
The Finance Minister Ishaq Dar told the National Assembly that the government had already announced merger of three Adhoc Allowances in the previous budget. He said the government last year spent an additional Rs 67 billion for salaries and allowances.
For the next fiscal year, Dar announced merger of Adhoc Relief of 2009 and 2010 for the Armed Forces and Adhoc Relief of 2010 for Civil Servants in the basic salary and topped it up with a 10 percent Adhoc Relief 2017.
The finance minister also announced a 10 percent increase in the pensions besides increase in the minimum salary to Rs 15,000.
The minister announced a Special Zarb-e-Azb Allowance of 10 percent of their salaries for all officers and jawans of the Pakistan Army. He said this allowance would be besides the other increase in the salary and allowances.
Ishaq Dar announced exemption of employees upto BPS-5 from the House Rent deduction while an increase of upto 60 percent in Daily Allowance Rate, Peon Allowance raised from Rs 12,000 to Rs 14,000, payment for burial etc raised from Rs 1,600 to Rs 4,800 and from Rs 5,000 to Rs 15,000.
The minister said the allowances for Pakistan Post employees were also being increased, besides a 50 percent increase in Design Allowance.
The Constant Attendent Allowance has been increased from Rs 3,000 to Rs 7,000 besides increase in different allowances for Pakistan Navy including the Batman Allowance, Pay Hardlying.
A Fixed Allowance of Rs 8,000 per month has been announced for Frontier Constablary (FC) and would be paid in three installments. The first being given on March 1, 2017 while second on July 1, 2017 and third on July 1, 2018.
