Expected salary increase for government employees in June 2024 budget: 10% raise anticipated, effective July, amid efforts to reduce inflation to 5-7%.
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Expected Increase in Salary of Government Employees
The federal government is expected to announce its first budget for the fiscal year 2024-25 in June 2024, amid various economic challenges. Both federal and provincial government employees eagerly await the announcement as it typically includes a salary increase, which considers various factors, including inflation.
Economic Overview
| Indicator | February 2024 | March 2024 | Target (September 2025) |
|---|---|---|---|
| Headline Inflation | 23.1% | 20.7% | 5 – 7% |
| Core Inflation | 18.1% | 15.7% | – |
The government aims to reduce inflation to a target range of 5 – 7 percent by September 2025. Recent data shows a decline in headline inflation from 23.1% in February to 20.7% in March, and core inflation from 18.1% to 15.7% over the same period. The State Bank of Pakistan’s Monetary Policy Committee expects this downward trajectory to continue.
Expected Increase in Salary
| Year | Expected Increase in Salary | Effective From |
|---|---|---|
| 2024-2025 | 10% | July 2024 |
In the upcoming budget for 2024-25, it is anticipated that the government will announce a 10 percent increase in the salaries of government employees. However, the final decision will be made after reviewing the recommendations from the finance ministry. If approved, the salary increment will take effect from July 2024.
