by In a significant relief for public sector employees and pensioners, the Punjab government has announced a 10% increase in salaries and a 5% hike in pensions in its Fiscal Year 2025 budget. The announcement was made during the budget session held in Lahore, where provincial finance officials outlined key economic measures to address inflation and economic challenges.
đź“Ś Key Highlights
- Salaries:
All government employees from Grade 1 to 22 will receive a 10% raise in their basic pay starting July 1, 2025. - Pensions:
Retired government employees will benefit from a 5% increase in their monthly pensions. - Minimum Wage Raised:
The minimum monthly wage has also been raised from Rs. 32,000 to Rs. 37,000, aiming to support low-income workers and improve purchasing power.
🧮 Why the Increase?
The Punjab government cited high inflation, rising cost of living, and the need to support public sector workers and pensioners as key reasons behind the decision. With inflation hovering above 20% for much of the year, real incomes have eroded, prompting calls for salary revisions.
According to officials, these increases are designed to:
- Provide relief to lower- and middle-income families.
- Stimulate economic activity through increased spending.
- Retain skilled personnel in public service.
đź’° Fiscal Impact
While the salary and pension hikes will add pressure to the provincial budget, the government has assured that the increase will be financed through improved revenue collection, digital tax reforms, and expenditure control measures. Punjab’s total budget outlay for FY25 is expected to exceed Rs. 5 trillion, with a significant portion allocated to development, health, education, and infrastructure.
🗣️ Public Reaction
- Employees’ Associations welcomed the move but demanded a larger hike in light of ongoing inflation and increased utility costs.
- Economic analysts appreciated the minimum wage increase, noting it aligns with current market conditions and offers much-needed relief to the working class.
đź“Ť Bottom Line
The 10% salary hike and 5% pension increase reflect the Punjab government’s attempt to balance fiscal constraints with public welfare needs. While it may not fully offset inflation’s impact, it provides partial relief and marks a step toward greater financial support for workers and retirees alike.
