Employees Pay Riase in Budget 2012-13 – Provinces insist on 15% only in NFC meeting

NFC Meeting – Govt employees salaries : Provinces warn against ‘irrational’ pay raise
Sources say finance ministry is under pressure from the presidency.

Islamabad (May 14, 2012) – Provinces have ‘advised’ the federal government to avoid any irrational increase in the salaries of government employees.
The provincial governments maintain that due to financial constraints, the finance ministry will find any increase above 15% in the next financial year very difficult to accommodate.

NFC meeting in Islamabad - Provinces insist on 15 percent pay raise in budget

They shared their thoughts after reports suggested that the federal government was looking to announce a significant raise in salaries in its fifth and last budget.
The concern was raised in a meeting of the federal government and provincial finance secretaries held to review budgetary positions, a provincial finance secretary said on the condition of anonymity. Punjab in particular thinks that any such decision would put the provinces in an awkward position, he added.
Punjab’s finance secretary Tarik Bajwa told i that the federal administration did not share any formal proposal on the increase in salaries. He said last year’s revision of basic pay scales and increase in salaries cost Punjab an additional Rs45 billion.
Bajwa added that there are roughly one million regular and contractual provincial employees.
The finance ministry, however, shied away from deliberating on the subject.
According to initial calculations, a 5% increase in salaries will cost an additional Rs11.5 billion to the national exchequer as there are 625,000 federal government employees. The projected expenses for running the government for the next fiscal year have been estimated at Rs240 billion, of which 40 to 45% will be on account of salaries.

Proposals under consideration
Sources said the finance ministry is under pressure from the top leadership to provide maximum relief to employees in light of the upcoming general elections.
The presidency wants a minimum increase of 35% in salaries. This will cost an additional Rs80.5 billion to the federal government alone. The provinces must be taken into confidence as any such increase will affect their fiscal position greatly,” said a source.
He added the finance ministry has briefed top executives that a maximum increase of 15%, which will cost the exchequer Rs34.5 billion, can be borne.

Deterioration in fiscal framework
The provinces on Monday refused to help the federal government to avoid the embarrassment of having the highest ever budget deficit in the country’s history.
The provincial governments were asked to save Rs154 from their respective budgets to keep overall deficit in check, but have told the federal administration that, at best, they could save only Rs90 billion – and that too if the FBR manages to collect Rs1.952 trillion in taxes.
The federal budget deficit has soared to 6.6 per cent in nine months.

(Published in Daily Express Tribune on May 15, 2012)

16 Comments


  1. no announcement regarding minimum pay raise

  2. Zia ur Rehman says:

    Dear Naeem y. Agar is pay main ap ki shadi nehin ho sakti to phir kabhi b nehin ho gi.

  3. Zia ur Rehman says:

    Increase in pay is good decision of Govt. I would like to congratulate my Supdt. Mr. Zafar Iqbal Zafar (C-2) for such increase. Good luck sir.


  4. is ka matlab ye huwa kay iss saal bhe mere shadi nahin ho gee.

  5. Noor ahmed says:

    Diljala Malik Khuda bux sahib ne koi comments nahi deya sub juhoot hain, Wesey PTCL ke pockety union waley Etisalat company sey mely baghat ker keh kah rahey hain aur molazem be khush hain ,


  6. The prices of every necessity is hiked by more than 200%, so the increase in salary should be increased by 300%. Because all the employees will wait till next Budget and prices will be so hiked by than in June 2013 that 15%/ 25%/ 35%/ 50%/ 100% or 200% increase will not be enough to fullfil the requirement of a common man (salary receiving people) during next year. Appreciating Zardari Government decesions for increase in salary.

  7. Malik Shahid Sadeeque says:

    minimum pay should be Rs. 50000/= for grade 17 and so on……..

  8. Malik Shahid Sadeeque says:

    yeh log kabhi bhi 2,6 million employees k baray main nai sovhain gay yeh sirf aur sirf 1000 ministers , MNA,s Senetors k baray main sochtay hain . Agar un k liay bullet proof garian chaiay to bhallay billions kharch ho jaien parwah nai hai gharib mulazim k ghar ka chollha jalany k liay in k pass paisy nai hain Afsoos Sad asfsoos.


  9. Govt. agar pays increase nahi kar sakti to kam az kam mahnaghai to na kary. Ab to har cheese ki keemat aasman say batain kar rahi hai. iss lahaz say salaries bhi increase honi chahihay.

  10. syed rashid says:

    maximum pay 100% increase honi chaiey.

  11. Sahil bilal says:

    Punjab govt ko pay increase par koi objection nai honi chahiye

  12. rizwan munawar gujranwala says:

    Cabinet to decide pay, perks of federal govt employees
    ISLAMABAD: Salary, pension and allowance package for the federal government employees will only be decided by the federal cabinet, a senior official at the Finance Ministry said on Monday. Size of the pay and pension package might not go beyond Rs 30 billion due to limited fiscal space available with the federal government, he said, adding that the charter of demands placed by the All Pakistan Clerks Association (APCA) to the Finance Ministry required availability of Rs 350 billion. The official explained that any five percent increase in salary and pension would require the ministry to ensure availability of Rs 11.5 billion and revision of pay scales by merger of two ad hoc relief allowances would have huge implications. In case the government decides to merge two ad hoc relief allowances of 15 percent and 50 percent in pay scales, its implications would be Rs 8 billion. Rs 1.5 billion would further be required to adjust medical allowance as per revised pay scales. At present, allowances are freezed at 2008 pay scales despite the fact that salaries are being given in accordance with pay scales of 2011. As per Pay and Pension Commission recommendations, the house rent could be increased from 45 percent to 60 percent. In case the government considers merger of two ad hoc relief allowances it would be required to bear the burden on increased house rent, medical and conveyance allowances. At present, 2.6 million government employees work across the country, that included 0.625 million federal employees, 1.1 million in Punjab and remaining three provinces Sindh, Khyber Pukhtunkhwa and Balochistan are collectively employing 0.9 million employees. At present, total salary budget is Rs 218 billion and pension at Rs 120 billion. staff report

  13. Khalid shehzada says:

    If 50% increase in pay .then it will be reasonable


  14. Increas pay minimum 100% bcz price of every thing increase 200%

  15. Sameer Ahmed says:

    Megahi bgt ziyada bhd chuka hai keh non-gazzated molazem du waqt ke roty thk sey kah nahi sakhtey hain ,maghar haram khure her cheh mainey ke bad 50 60 korod dunam bary fand wasol ker keh hadaf kartey rehtey hain , pher be mulazimo keley 35 percent de ney sey mahr rahey hain , WILL BE SHAME 15 PERCENT FOR SMALL EMPLOYEES ,

  16. Sahil bilal says:

    Very sad by provincal govts

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