The federal government will spend Rs 25.5 billion next year on government employees on account of 15 percent increase in pay, house rent and medical allowances to provide them relief. The Federal budget 2005-06 on Monday showed 10 percent increase in pension and house loan for the families falling in lower income group. The federal government, on the recommendations of pay and pension committee, has given a 15 percent raise against their pay scale.
Employees in grade 1 to 15 will get 29 percent whereas the income of officers will increase by 22.5 percent from July 1,2005.
In the budget, house rent has been enhanced. But now house rent will be 40 percent of the 2005-06 salary package announced by the government.
The government has also increased the limit of minimum wage from Rs 2,500 to Rs 3000. Every salaried person will benefit from this relief.
Similarly, the government has made a 10 percent increase in pension, raising the minimum pension from Rs 700 to Rs 1000.
A special scheme is being launched for widows and orphans of government employees, who borrowed up to Rs 100,000 from HBFC, so that their loans can be liquidated. In addition, HBFC is bringing in a new package to ease financial distress of its longstanding defaulters.