ISLAMABAD, July 13: The government has notified 20 per cent increase in salaries and pensions of civil servants and armed forces personnel, with effect from July 1.

The ministry of finance issued a notification to increase the minimum pension for civilian pensioners of the federal government, including civilians paid from defence allocations as well as armed force personnel from Rs300 per month to Rs2,000. Pension paid to families of retired government servants has also been increased to Rs1,000 per month from Rs150.

The notification said that the increase would be admissible on pensions being drawn. It said if the gross pension sanctioned by the federal government was shared by any other government, the increase would be apportioned between the federal government and the other government.

However, the increase “shall not be admissible on special additional pension allowed against pre-retirement orderly allowance”. Similarly, the increase “shall not be admissible to re-employed pensioners during their re-employment period”.

The notification said the adjusted basic pay-scales for 2008 “shall replace the existing scales and the basic pay of employees shall be fixed in adjusted basic pay-scales on point-to-point basis”.

If the pay being drawn by an employee as part of his basic pay beyond the maximum of his scale on June 30, he will continue to draw such pay in the adjusted basic pay scale 2008 at the revised rates.