ISLAMABAD: The federal cabinet, which met under the chairmanship of Prime Minister Shehbaz Sharif, gave approval to a fifteen per cent increase in the salaries and five per cent in the pension of government employees on Monday.
The cabinet also gave a nod to merging the ad hoc allowances (2016-17-18-19 & 21) of government employees into their Basic Pay Scale 2017. In the budget, the finance ministry had proposed a 10 per cent increase in salaries. But, PM Shehbaz rejected the proposal and approved a 15% increase.
| Salary bracket | Monthly tax |
|---|---|
| Rs50,000 per month or Rs600,000 annually | Zero tax |
| Rs100,000 per month or Rs1.2 million annually | Rs100 |
| Rs200,000 per month or Rs2.4 million annually | Rs7,000 |
| Rs300,000 per month or Rs3.6 million annually | Rs19,500 |
| Rs400,000 per month or from Rs3.6 million to Rs6 million annually | Rs54,500 |
| Rs500,000 per month or from Rs6 million to Rs12 million annually | Rs65,750 |
| Rs1 million per month or Rs12 million annually | Rs167,000 |
| People earning over Rs12 million annually | Over 32.5% |
In the budget of Imran Khan’s previous government, salaries and pensions of government employees were increased by 10 per cent. In Finance Bill 2022/23, the tax slab for employed professionals has been reduced from 12 to 7.
Other benefits
