ISLAMABAD: The federal government on Friday presented the budget for 2021-22 and announced an increase in monthly minimum wage to Rs21,000 from Rs17,500.
Finance Minister Shaukat Tarin while presenting the budget on the floor of the house, announced to increase the minimum wage to Rs21,000 to reduce the burden on lower income groups of rising prices. He said that the minimum wage is proposed to be increased to Rs21,000 to mitigate the inflationary pressures on the low-income groups.
The minister also announced an increase in pay and pension by 10 percent effective from July 01, 2021. He said that the government was aware of high prices and difficulties faced by the lower income group. He added that last year the government had taken austerity measures and due to this increase in salary and pension was not granted.
He said that the economy had improved now and the government decided to increase the salary and pension by 10 percent. He added that from July 1, 2021 all employees of the federal government would get adhoc relief of 10 percent. Similarly, pensioners would get an increase of 10 percent in their pension from July 1, 2021.
The government decided to increase the integrated allowance for Grade 1 to Grade 5 employees of the federal government from Rs450 to Rs900.