ISLAMABAD: The Ministry of Finance has announced a substantial salary increase for employees of government and semi-government corporations.
According to the new notification, employees in BPS 1 to 16 will receive a 25% raise, while those in officer ranks from BPS 17 to 22 will see a 20% salary increase.
This increase, effective from July 1, 2024, aims to provide financial relief to thousands of employees nationwide. Finance Minister Muhammad Aurangzaib introduced these changes during the presentation of the 2024-25 budget.
The budget also includes a 15% increase in pensions for retired employees and a proposed hike in the minimum monthly wage from Rs 32,000 to Rs 37,000. These proposals were later approved by the National Assembly.
In addition, the budget for fiscal year 2024-25 features a significant tax reform. Individuals earning up to Rs 600,000 annually will be exempt from income tax.
Income Tax Slabs for 2024:
- Rs 600,000 to Rs 1.2 million: 5% tax
- Rs 1.2 million to Rs 2.2 million: Rs 30,000 fixed tax plus 10% on income over Rs 1 million
- Rs 2.2 million to Rs 3.2 million: Rs 180,000 fixed tax plus 25% on income over Rs 1 million
- Rs 3.2 million to Rs 4.1 million: Rs 430,000 fixed tax plus 30% on income over Rs 900,000
Above Rs 4.1 million: Rs 700,000 fixed tax plus 35% on income exceeding Rs 4.1 million
