‘No salary, pension hike under consideration’

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Monday made an important announcement regarding salary and pension hike in the FY2025-26 budget, ARY News reported.

In a written response to the National Assembly, Finance Minister Muhammad Aurangzeb announced that there is no proposal under consideration for salary or pension hike of government employees in the upcoming fiscal year 2025-26 budget.

No revision of pay scales or allowances is being considered, he said and added that the increase in hiring and ceiling limits for employees is under review.

The finance minister clarified that the government’s current focus is on controlling expenditures and stabilizing the economy.

Read more: Govt notifies major reforms in pension policy

Last year, the Ministry of Finance issued notifications regarding three key amendments to the pension rules.

According to the notification, the family pension would now be limited to 10 years whereas if the pensioner dies, only legal heirs will be eligible to receive the pension transfer.

The notification stated that the spouse of a deceased pensioner will continue to receive a pension for 10 years after their death. Furthermore, if a deceased pensioner’s child is disabled, they will be eligible to receive pension for life.

The ministry has also announced measures to discourage early retirement, including a 3% deduction in pension for early retirement. This deduction will apply to the remaining service period up to 60 years.