Salary Increase News Budget 2021-22 Pakistan

For the information of the visitors, I am sharing the Salary Increase News Budget 2021-22 Pakistan. The details have been obtained from the express newspapers. These are just news for the info of the readers. It is not the actual position of the Government. The Government can implement it or not and may amend the proposal totally or partially. So don,t think it to be final or 100% sure. So just enjoy it.


Salary Increase News Budget 2021-22 Pakistan


The main points of this news are as under:


  • New Pension system proposed
  • The Government will freeze the salary after 25 Years of service
  • 15% to 20% increase in Pay and Pension
  • Merging of Disparity Reduction Allowance
  • Monetizing of Conveyance Allowance of the Officers
  • To get the services of the private company to remove the difference of the salary of the employees


The Latest News Regarding Salaries Increase as on 30-05-2021


There are the Latest News Regarding Salaries Increase in Budget 2021-22 for employees. The same news is extracted from the Daily Dunya News dated 30th May 2021. This news may be true or not. This type of news is common before every year budget. Mostly the news is much different from the actual allotment of pay and pension for the employees. But let’s read what the newspapers say about the salary increase in the coming budget 2021-22.

Latest News Updates Pay and Allowances


According to the Daily Dunya dated 30-05-2021, there is a proposal of many for Govt employees. These are just recommendations by the sub-groups of the pay and pension committee. The meeting of the main pay and pension commission is scheduled for 31st May 2021. This pay and pension committee will finalize the recommendations of these sub-committees. You can say this information is just in raw form. The actual position will clear after the approval of the main committee. The following is the summary of this news clip:


Proposals of Sub-Committees


  • Merging of 10% Adhoc Relief Allowances 2018 and 2019 and introducing new basic pay scales 2021.
  • Proposal of the grant of 15% Adhoc Relief Allowance on these new pay scales.
  • To freeze the Adhoc Relief Allowance 2017 that was granted during Revised Pay Scales 2017 by Federal Government. ARA-2016 is already frozen. These allowances are no chances to be merged into basic pay scales.
  • Monetization of Conveyance Allowance for Employees of BPS-17 to 19
  • The sub-committees proposed not to allow official vehicles to BPS-17 to BPS-19 and grant them an allowance along with salary.
  • The subcommittee proposed to increase in Medical and Conveyance allowance @ 100% for the employees of BPS-01 to BPS-16.



The Latest News Regarding Salaries Increase in Budget 2021-22



Salary Enhancement Updates as on 27-5-2021


As per the news dated 27th May 2021, there is a proposal for a 12.5% increase in salary and 10% in pension for the pensioners. The sources of the same are Daily Jang.


Salary News Updates 2021


Daily Express


Salary Increase News Budget 2021-22 Pakistan

A detailed explanation of the above points is as under:


New Pension system proposed


The Government is working to reduce the pension load on the treasury. For the said purpose the Government has already constituted a pay and pension committee. There are chances that Government will introduce a new pension system soon. Govt may introduce a contributory pension system.


No Increase of Basic Salary after 25 Years’ service


There may be 2 points in this regard.


  • The government may not increase the basic pay and keep the allowances as separate heads whenever new scales introduce. The new scale may work for employees having less than 25 years of service.
  • The 2nd option as per my opinion is that the employees having 25 years of service or more will get the benefit of the revised pay scales. In this option, as you know that when we calculate pension we maximum use 30 years of service. If the employee has more than 30 years of service we don’t count for the pension calculation. As I already mentioned the full details regarding the calculation of pension and commute. Now the Government may reduce the same number from 30 to 25. Govt may not consider service for more than 25 years.


15% to 20% increase in Pay and Pension


The Government may grant a 15% to 25% Adhoc Relief Allowance as the new revised pay scales 2021 and new pension system may be late.


Disparity Reduction Allowance


The Disparity Reduction Allowance, that the Federal Government employees are getting, the Government will merge into pay as per the Notification of DRA-2021 @ 25%. Only Federal Government employees are getting this allowance at this time.


Budget 2021-22 Pakistan and DRA 2021


What Government Employees Want in 2021 Budget?


There are many demands of the employees but I am sharing here the main demands of the employees.


DRA 2021 @ 25%


Federal Government has granted Disparity Reduction Allowance 2021 with effect from 1st March 2021 to only Federal Government employees. All the other provincial Govt employees that Government will also grant them the same allowance.


New Revised Pay Scales 2021


The Pay scales were last revised in 2017 after that now pay scales were revised. Now it is the time Govt revise the same. There are 4 main allowances that the employees are getting at this time these are as under:


  • Adhoc Relief Allowance 2016 (Frozen)
  • ARA 2017 (Adhoc Relief Allowance 2017 @10%)
  • Adhoc Relief Allowance 2018 (10%)
  • Adhoc Relief Allowance 2019 (5% & 10%)
  • DRA 2021 @ 25% (Federal Only)


Government should now merge these allowances into basic pay scales and introduce new revised pay scales in 2021.


House Rent Allowance


The Employees of BPS-01 to BPS-16 are not getting the reasonable House Rent Allowance. These employees are getting only about 1500 to 5000/- as HRA is not enough. The minimum rates of houses in main cities are 12000/- to 30,000/-. Government should minimum grant the HRA as per the 45% of initial of the newly revised pay scales not the pay scales of 2008. At this time employees are getting the House Rent Allowance on the initial of the Basic Pay Scales 2008.


Medical Allowance


The medical allowance that the employees are getting is not enough as the rates of the medicines; the Government has increased many folds. The common employee is just getting 1500/- per month while Doctor Fee per month per person is about 1500/- to 2000/- So Government should also consider this point too. There are also many other demands of the employees that I shall cover in another article.



Daily Jang Dated 17th May 2021 Pay Increase Updates


The Daily Jang dated 17-05-2021 also narrates nearly the same story as the Daily Express. The main points of the Daily Jang are as under:


Daily Jang Dated 17th May 2021 Pay Increase


  • In Budget 2021-22, there is a proposal for an increase in pay and pension @ 15% to 20%.
  • IMF has granted permission to raise the salaries of the employees
  • The pay & Pension committee is working on the pension reforms.
  • There may be an Adhoc relief allowance for the Government employees.
  • The Government may freeze the basic pay of the employees who have 25 Years of service or more.
  • Removal of salary differences among the employees of various departments/divisions and ministries.
  • Rationalization of Pay & Pension
  • Short Term, Mid Term, and Long Term Plan for the rationalization of pay and pension
  • The Budget presentation 2021-22 is expected during the 2nd week of June 2021.
  • Monetization of Travelling Allowance from BPS-17 to BPS-19 as per the BPS-20 to 22.



10% Adhoc Relief Allowance 2021


As per the Daily Jang of the dated 27th May 2021, there is a proposal to grant a 10% Adhoc Relief Allowance 2021 to employees. The Federal Government will approve it with the consultation of the Federal Government. Punjab Government showed reluctance to it. There are chances that the Government of Pakistan may grant this 10% ARA in addition to the Disparity Reduction Allowance. However, there are few days to announce the budget lets see which way the wind blows.


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