In yet another development, the federal government is considering improving the basic pay scales of regular employees, whereas the government of Punjab is a staunch opponent to this proposal due to its huge pool of employees. Sources said the government of Punjab was opposing the proposal due to the massive number of employees compared to other provinces and it was difficult for them to give equal increment to its employees.
However, Sindh, Balochistan, and Khyber Pakhtunkhwa are somewhat in favor of the proposal. The federal government has also sought recommendations from the provinces in this regard. The federal government is also mulling increasing salaries from 15 to 35 percent in the fiscal budget 2012-13. Sources said that federal government drafted three recommendations for increase in salaries and the cabinet would take a final decision in this regard. The sources said if the government increased salaries by 15 percent, it would bear an addition load of Rs 20 billion, in case of 25 percent an additional Rs 37 billion, while it would bear an additional Rs 57 billion in case of a 35 percent increase in salaries.
Country’s economic trouble shooter and a pay committee developed three formulas for salary increase package for the next financial year starting July 1, 2012, according to which a 50 percent ad-hoc relief allowance announced in 2010-11 budget and 15 percent announced in 2011-12 had been proposed for merger in pay scales, the new pay scales to be applicable from July 1 this year.