ISLAMABAD: Prime Minister Imran Khan and his Cabinet have reportedly refused to accept 10 percent raise in basic salaries, as proposed by the Cabinet Division, due to the country’s economic condition, official sources told Business Recorder.
The sources said the agenda item was tabled in Cabinet’s meeting held on August 3, 2021. The Finance Division, in its O.M. of July 8, 2021, granted an ad-hoc relief allowance-2021, @ 10% of basic pay to the civil employees of the Federal Government with effect from July 1, 2021.
The sources said section 22A of the Federal Ministers and Ministers of State (Salaries, Allowances and Privileges) Act, 1975 states the salaries, allowances and privileges of Ministers shall automatically be increased by the Federal Government in proportion to the increase in the emoluments of the civil servants.
In terms of Section 22A of the Federal Ministers/Ministers of State Salaries, Allowances and Privileges Act, 1975 the Ad-hoc Relief Allowance, 2021 shall also be admissible to the Federal Ministers/Ministers of State with effect from July 10, 2021.
Finance Division proposed ad-hoc relief of Rs20,000 for Federal Minister whose salary is Rs200,000 per month and Rs18,000 per month for Ministers of State who get salary of Rs180,000.
The Cabinet Division proposed that the Federal Cabinet may approve the admissibility of ad-hoc Relief Allowance, 2021, to the Federal Ministers and Ministers of State.
During ensuing discussion and keeping in view the economic condition of the country, the Prime Minister voluntarily declined to accept ad-hoc relief allowance admissible to him as notified by Cabinet Division in an Office Memorandum of July 30, 2021 and directed Cabinet Division to withdraw it.
Similarly, the Cabinet members also declined to accept the pay raise, as proposed by Cabinet Division in its summary.
Copyright Business Recorder, 2021