Budget Speech 2021-22 and Increase in Salaries of Employees

Last Updated on October 30, 2021 by Galaxy World

As per the Budget Speech 2021-22 copy of the Federal Government, the Government made the announcement of an increase in salaries and pension. The increase in pay and pension, the Govt announced, is not as the employees were expecting. The full packages for the employees and pensioners in the Budget 2021-2022 are as under:

Budget Speech 2021-22 Copy and Increase in Salaries of Employees


The following pay and allowances/pension the Finance Minister announced in the budget speech 2021-22:


Adhoc Relief Allowance 2021


Finance Minister announced Adhoc Relief Allowance 2021 @ 10% of the Basic Pay. This allowance is with effect from 1st July 2021.


Ardali Allowance


Govt increased Ardali Allowance from Rs. 14000/- per month to 17500/- per month.


Integrated Allowance


Federal Government increased the integrated allowance for the employees of BPS-01 to BPS-05. The amount increased from Rs. 450/- per month to Rs. 900/- per month.


Minimum Wages Rates


According to the Budget Speech, the Government fixed minimum wage rates Rs. 20,000/- per month.


Increase in Pension


The government increased pension @ 10% of the pension the pensioner getting.


Budget Speech 2021-22 and Increase in Salaries of Employees


Before Budget Announcement Pay/ Pension Increase News


Before the announcement of Budget 2021, there was news that Federal Cabinet approved a 10% increase in salary. Nearly all TV channels broke this piece of news. This news was not good for the employees if it was only a 10% increase. As the actual position was too clear in the Budget Speech, so the employees forgot this news and focused on Budget Speech.


Newspapers News since 2 Months and Employees


The employees were reading the news of their pay and pension increase in this Budget 2021-22. Various newspapers published different news on daily basis. These newspapers do the same every year. The newspapers published the news as they get some raw news from some sources. These are just news and the Cabinet is the final authority that approves the benefits for the employees and pensioners.

            In the newspapers, you read the latest updates of salary increase in Budget 2021-22. Some newspapers published that Government will grant 10% to 25% Adhoc Relief Allowance. In the same way, some papers published the stories of Medical, Conveyance, House Rent, and Hiring. Conveyance monetization was also the story of a few dailies. There was also news for the increase in Pension for pensioners. Some newspapers mentioned that Government will merge a few Adhoc Relief Allowances and Introduce New Revised Pay Scales 2021. Finally, you saw the only above benefits as per the Budget Speech Copy 2021.


The Benefits employees Got with Comparison to News


According to the negotiation at the time of sitting in Islamabad, the Government fulfilled only one demand that was 25% DRA 2021. The Government agreed to grant a 40% allowance at that time but it wanted to give the same in this Budget 2021-22. The revised pay scales 2021 were also their demand. There were some other demands like Time Scale Promotion of Employees and Up-gradation. Now it is the time to fill the remaining demands of the employees. The demand of the employees was also to merge some allowances into Revised Pay Scales 2017 and the introduction of new basic pay scales.  Here is the checklist of the demands of the employees and newspapers news. You can compare the same that the Government promised and granted.


Check List


Sr. No Salary News Govt Announced/Not Granted
1 Revised Pay Scales 2021 No
2 Adhoc Relief Allowance 2021 @ 10% to 25% Yes (10%)
3 Increase in House Rent Allowance No
4 Enhancement of Hiring No
5 Medical Allowance No
6 Conveyance Allowance No
7 Merging of 25% DRA 2021 No
8 Merging of Adhoc Relief Allowances 2016,2017,2018 and 2019 No
9 Conveyance Monetization for BPS-17 & Above No
10 Grant of Time Scale to Employees No
11 Remaining 15% ARA to those employees who are not getting 100% or more allowances No
12 Upgradation of Employees No

Share this post

Post Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.