Mohsin Siddiqui (Chief Reporter)
On Wednesday, the government announced a significant pay and pension increase for all federal government employees and pensioners. Effective from July 1, 2024, this measure aims to provide financial relief and support to federal employees and retirees across various grades and departments.
According to the Finance Division’s Regulation Wing Office Memorandum (OM), the President has sanctioned an ad hoc relief allowance for all federal government employees, including armed forces, civil armed forces, and civilian employees. This allowance also extends to civilians paid from Defense estimates, contingent paid staff, and contract employees employed against civil posts in Basic Pay Scales on standard contract terms and conditions.
Federal employees in Grades 1-16 will receive a 25% increase in their running basic pay. Federal employees in Grades 17-22 will receive a 20% increase in their running basic pay. The allowance will not be treated as part of emoluments for calculating pension/gratuity and recovery of house rent. It will not be admissible to employees during their posting/deputation abroad. The allowance will be admissible to employees on repatriation from posting/deputation abroad at the rate and amount they would have received had they not been posted abroad.
For the purpose of the ad hoc relief allowance, the term “basic pay” includes personal pay granted on account of annual increments beyond the maximum of the existing pay scales. the ad hoc relief allowance will be accommodated within the budgetary allocation for the fiscal year 2024-25 by the respective ministries, divisions, and departments. No supplementary grants will be provided for this purpose.
In a separate Office Memorandum, the Finance Division announced a 15% increase in net pension for all civil pensioners of the federal government, including civilians paid from defense estimates, retired armed forces personnel, and civil armed forces personnel. This increase is effective from July 1, 2024, and will remain in effect until further orders. The 15% increase will also be admissible to pensioners who retire on or after July 1, 2024. For the purpose of this increase, “net pension” is defined as the pension being drawn minus the Medical Allowance.
Granted under the pension-cum-gratuity scheme, 1954, and liberalized pension rules, 1977. Sanctioned under the central civil services (Extra Ordinary Pension) rules. Provided under CSR-353. If the gross pension sanctioned by the federal government is shared with another government, the increase in pension will be apportioned between the federal government and the other government on a proportionate basis.Allowed in lieu of pre-retirement orderly allowance .This exclusion ensures that only the basic pension amount is increased.
