The initial proposal to increase wages from 15% to 20% was made in the federal budget.
According to finance ministry sources, it is proposed to increase the monetization policy for bureaucrats from Rs 40,000 to Rs 60,000 and for officers up to class 20 from Rs 65,000 to Rs 105,000.
It is proposed to increase the monetization policy for Class 21 employees from Rs 75,000 to Rs 120,000, while for Class 22 employees, monetization is proposed from Rs 95,000 to Rs 155,000.
Sources indicated that a 10% hike in the salary of employees from Grade 1 to Grade 22 would have an impact of around Rs 80 billion.
According to sources, there is a demand for a 200% increase in medical and transportation allowances for employees from Class 1 to Class 16.
Sources in the Finance Ministry said that employees from class 1 to class 16 now get Rs 1,800 and Rs 1,500 as medical allowance, while employees of classes 17 and 18 now get transport allowance of Rs 5,000. There is also an initial proposal to increase transportation fees by 200% for grades 17 and 18.
Sources said that workers from grade 1 to grade 16 will receive an inequality allowance of 25% and 15% in 2021 and 2022 respectively. There are proposals to continue disparity allowances to reduce the wage gap between state and federal workers.
Please note that the proposal to increase salaries and allowances is at an early stage and the final decision will be discussed by the Prime Minister and the Ministry of Finance and the Cabinet.
