Tuesday, July 5, 2011

Increase in Salaries, Pakistan 2012 - 13 budget

Federal government intends to increase salaries from 20% in running basic pay/salaries in the budget 2012-2013.

Last year 2011-12.
Federal govt on Monday issued notification for 15 – 20% increase in salaries and pensions of all civilian employees with effect from July 1, after merging 5 temporary increments since 1999 into the basic pay scales.
Resultantly the basic pay scales have improved by about 65% for lower grade employees and between 55 to 62% for grade 17 to 22, although the financial impact of such increases will not go up much because the employees were already benefiting from these allowances in the name of ad hoc, dearness, relief or special allowances etc.
After merger of these ad hoc allowances, the Basic Pay Scales-2008 would be replaced with BPS-2011.
In addition to the 15% hike in basic salaries, the employees will also get more than 300 per cent hike in ‘miscellaneous’ allowances.Annual increments have also increased proportionately.A ad hoc allowance of 2010 at the rate of 50% of the running basic pay shall stand frozen .
Medical allowance to civil servants in BPS 16 to 22 at the rate of 15% will be paid at the frozen level of June 30, 2011 and all special pays and allowances, including house rent, special allowance equal to one month of basic pay shall stand frozen as well.
Conveyance allowance for all employees in scale 1 to 15 has been increased by 25%.


  1. It seemed that the govt has successfully befooled public servants in the budget and issued a 'deceptive' notification afterwards.

  2. Merger of ad-hoc allowances will ve effect on H.rent

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