The Federal Ministry of Finance has officially notified an increase in the salaries of government and semi-government employees.
Salary Increase Breakdown:
BPS 1-16 Employees: A 25% salary increase has been granted.
BPS 17-22 Officers: A 20% salary hike is approved.
The salary increase, effective from July 1, 2024, is a part of the 2024-25 budget, providing much-needed relief to thousands of employees nationwide.
Federal Ministry Key Budget Highlights
Finance Minister Muhammad Aurangzaib, while presenting the 2024-25 budget, made several announcements:
Pension Increase: Retired employees will receive a 15% increase in their pensions.
Minimum Wage: The minimum monthly wage will rise from Rs 32,000 to Rs 37,000.
Tax Exemptions: Individuals earning up to Rs 600,000 annually will be exempt from income tax.
New Income Tax Slabs for 2024-25:
Rs 600,000 - Rs 1.2 million: 5% income tax.
Rs 1.2 million - Rs 2.2 million: Fixed tax of Rs 30,000 + 10% on income over Rs 1 million.
Rs 2.2 million - Rs 3.2 million: Fixed tax of Rs 1.8 lakh + 25% on income over Rs 1 million.
Rs 3.2 million - Rs 4.1 million: Fixed tax of Rs 4.3 lakh + 30% on income over Rs 9 lakh.
Above Rs 4.1 million: Fixed tax of Rs 7 lakh + 35% on excess income.
These changes aim to ease financial pressure on employees and improve their overall living standards.