Salary Increase News 35% of Employees in Budget 2024-25 in Sindh and Balochistan
Sindh and Balochistan Governments Plan Salary Increases Beyond Federal Level
In the next financial year, Sindh and Balochistan governments have decided, in principle, to increase the salaries of government employees beyond the federal government’s levels. The initial desire for a 50% salary increase will not be met, as more focus will be placed on flood-affected projects and infrastructure development.
Chairman Bilawal Bhutto Zardari of the People’s Party had proposed a 50% increase in response to rising inflation, but due to budget constraints, this isn’t feasible.
Consultations with the federal government indicate that federal employees may see a modest increase of 10 to 15 percent. However, the People’s Party leadership has directed Sindh and Balochistan to exceed federal increases, possibly by 20 to 35 percent, pending a decision by the National Economic Council. Sindh already faces high non-development expenditures, with a substantial portion allocated to employee salaries.
Despite this, both provinces are expected to surpass federal salary adjustments, a practice previously observed in Sindh. Additionally, the development budget is set to increase, with a focus on projects supported by international financial institutions. Notably, there will be a significant allocation for the construction of 210,000 flood-affected houses. The next financial year’s budget may allocate approximately 4 trillion rupees for projects backed by external aid and loans. Increased funding is also earmarked for the road sector and solar projects in the upcoming development budget.
Proposal for 35% Salary Increase in Sindh and Balochistan: Budget 2024-25
Sindh Government’s Proposal:
According to the Daily Ummat Karachi dated 10th May 2024, the Sindh Government proposes a 35% increase in employee salaries as an allowance. Initially, Chairman of PPPP advocated for a 50% salary raise, but the Sindh Finance Department cited budget constraints, leading to the revised proposal of 35%. Notably, the previous year saw the issuance of Adhoc Relief Allowance 2023 at 35% and 30% for Sindh government employees, setting the stage for potential further increments.
Priority over Federal and Provincial Levels:
Discussions between the Sindh Government and the Federal Government reveal the latter’s inability to raise employee salaries by more than 10% to 15%. Consequently, the Sindh Government presses for higher salary increments for its employees compared to the federal counterparts. Sources suggest a potential increase ranging from 20% to 35%. Final decisions are anticipated on the day of the Budget 2024-25 announcement.
Updates on Salary Raises in Other Provinces:
Recent updates indicate similar initiatives in other provinces. The Khyber Pakhtunkhwa Government seeks recommendations for salary increments, alongside enhancements in medical, conveyance, and house rent allowances in its budget for employees. Likewise, there are talks of a 10% to 15% salary increase for federal employees. It is likely that the Punjab Government will follow suit with salary adjustments akin to those proposed by the Federal Government.
