ISLAMABAD: The government on Friday notified more than 48pc increase in basic salaries of all the government servants, including civil and armed forces, in grade 1 to 22 or equivalent and 15pc increase in pensions of ex-employees with an immediate effect.

In doing so, the government completely revised the basic pay scales and allowances of the civil servants from BPS-2017 to Basic Pay Scales-2022 (BPS-2022). The 48pc increase works out on the basis of these two basic pay scales but since they were already drawing financial benefits, the effective increase for this year would be 15pc.

The notification said the basic pay of employees in service on June 6, 2022 shall be fixed in the BPS-2022 on point to point basis i.e. at the stage corresponding to that occupied by him or her above the BPS-2017. In case, personal pay being drawn by an employee as part of basic pay beyond the maximum pay sale on June 30, 2022 the employee shall continue to draw such pay in the BPS-2022.

With the introduction of BPS-2022, the ad hoc relief allowances at the rate of 10pc each year for last five years since July 1, 2016 would stand merged in the new scales and cease to exist with effect from July 1, 2022.

Notification also includes 15pc increase in pension

On top of this revision, an ad hoc relief allowance (ARA) at the rate of 15pc of the running basic pay of BPS-2017 has been allowed to the civil employees of the federal government as well as civilians paid out of defence estimates, including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment with effect from July 1, 2022and shall stand frozen at the same level till further orders.

All the new entrants shall be allowed ARA-2022 at the rate of 15pc of the minimum of the relevant basic pay of BPS-2017 on notional basis with effect from July 1, 2022 till further orders and shall stand frozen at the same level. The ARA will be subject to income tax and will be admissible during leave and entire period of last pay drawn (LPR) except during extraordinary leave.

The ARA will not be treated as part of emoluments for the purpose of calculation of pension or gratuity and recovery of house rent. This ARA will not be admissible to the employees during the tenure of their posting or deputation abroad but would be admissible on their repatriation from abroad at the rate and amount which would have been admissible to them, had they not been posted abroad.

According to BPS chart, also notified by the finance ministry, the revision has resulted in an increase of 48pc in basic salary of all the employees from grade 1 to 22. The ministry also notified 15pc increase in pensions including 10pc allowed on April 1, 2022. The 15pc increase in pension will also be admissible to those pensioners who retire on or after July 1, 2022. The previous five increases (of 10pc each since 2017) will cease to exist for the pensioners who will retire on or after July 1, 2022.

Published in Dawn, July 2nd, 2022