In a key decision during its latest session, the federal cabinet led by Prime Minister Shehbaz Sharif finalized next year’s budget, endorsing a modest 6% salary increase for civil servants and a slightly higher 7% raise in pensions.
The move comes despite mounting pressure from public sector employees for more substantial adjustments to cope with inflation.
Official sources revealed that the finance bill, cleared during the meeting, includes several measures intended to ease financial burdens on salaried individuals.
However, the approved increments fall far short of the demands voiced by employee unions, who have been pushing for at least a 50% raise to match skyrocketing living expenses.
Reports indicate that the government had initially considered three possible salary hike options—6%, 10%, or 15%—before settling on the lowest figure.
The Finance Ministry reportedly advocated for restraint, emphasizing budget limitations, while workers’ representatives warned of potential protests if their concerns were ignored.
The decision has sparked frustration among government staff, who argue that their purchasing power continues to erode as wages fail to keep pace with inflation.
With discontent brewing, the approved increases may do little to prevent unrest among employees struggling with the rising cost of essentials.
