The federal government has ruled out any increase in wages and pensions for public sector employees in the next budget, confirmed finance minister Muhammad Aurengzeb in a written response to the National Assembly.
During the time of the question, Aurengzeb declared that no proposal is being considered to review the salary scales, assignments or pensions for government employees in the next fiscal year.
However, he mentioned that the government is reviewing the roof and hiring limits for public sector workers.
The announcement occurs at a time of increased inflation, with many government employees with the hope of a financial relief in the next budget.
The decision is expected to generate concern among public sector workers who have been fighting with the growing cost of living.
While the government continues to evaluate its financial policies, the lack of a salary increase could increase economic tension against employees. The next budget will probably be observed closely by several interested parties as discussions on economic measures develop.
Earlier this month, the government announced significant changes in pension calculations, introducing new conditions and restrictions.
A notification issued on Wednesday stated that the pension will now be calculated based on the average salary of the last 24 months, instead of the final salary. In addition, employees may no longer receive multiple pensions.
According to the notification, the new calculation will not apply to employees who opt for voluntary retirement. In addition, incremental increases in the last year of service will not be included in the average pension calculation.
The Government has also reviewed the pension increase mechanism for existing pensioners, ensuring that family pensions are now calculated according to net pension values.
