(Web Desk) — A 10% to 15% increase in government employees’ salaries is anticipated in the federal budget for the fiscal year 2024-25. The federal government is also expected to raise pensions for retired employees by 10%.

According to the sources, there is a proposal to increase funding for the Employees’ Old-Age Benefits Institution (EOBI). Pension reforms aimed at reducing the burden on the national exchequer are also likely to be introduced.

The government is considering setting the Federal Board of Revenue (FBR) tax revenue target at over Rs12.5 trillion for the upcoming budget. Regarding salaries, the Ministry of Finance is leaning towards a 10% raise. However, due to potential pressures, this raise could increase to 12.5% or even 15%.

Another proposal under review is to increase the car monetization benefits for higher-grade officers in grades 20, 21, and 22 by 20% to 25%. Currently, grade 20 officers receive Rs67,000 per month, grade 21 officers receive Rs77,000 per month, and grade 22 officers receive Rs87,000 per month. Given inflationary pressures, an increase is being considered since these rates have not been adjusted since the policy’s inception in 2012.

According to The News, the government plans to introduce pension reforms in the next budget for 2024-25. One proposal under consideration is to impose a tax on pensioners receiving over Rs100,000 per month, potentially introducing different tax slabs for higher-income pensioners starting from the next budget.