15% increase in basic pay of govt servants announced in budget 2011-12

The government has announced 15 % increase in salaries of all government employees and personnels of the armed forces, besides, revision in Basic Pay Scales (BPS) 2008 by merging all ad-hoc relief allowances granted up to July 1, 2009. The government also announced 15 to 20 percent increase in pensions of retired government employees. Federal Finance Minister Dr Abdul Hafeez has also announced to increase government servants’ conveyance allowances by 25 % from grade 1 to 15. He said that govt has decided to revise the pay scales, after merging the ad-hoc relief given to the government employees of 2009. The minister proposed an increase in pay at the rate of 15 percent to all government employees and personnel of the armed forces with effect from July 1. He also proposed an increase in the miscellaneous allowance mostly admissible to the employees in BPS 1-15. He also proposed compulsory monetisation of transport facility to the civil servants in BPS-20 to BPS-22 of the federal government. Earlier the govt had decided not to increase salaries of govt servants due to financial constraints.