The federal government has approved an increase in the rate of profit of the provident fund of its employees.
According to the finance ministry, the profit rate of the provident fund has now been increased to 14.22% for the current fiscal year. It pointed out that the profit rate in the financial year 2021-22 was 12.40%.
The finance ministry has informed the controller general of accounts about the decision through a letter.
It should be noted that the federal government had increased the salaries of its employees by 30-35% and pensions by 17.5% in the budget.
According to a notification, the adhoc relief allowance of government employees up till Grade 16 had been increased by 35%. Similarly, the adhoc relief allowance of government officials from Grade 17 to Grade 22 had been raised by 30%.
Read PSX surges, becomes world’s best performing
Contract employees and contingent pay workers would also avail the allowance.
All federal government employees, including the armed forces personnel, civil armed forces and civilian employees, too would also be handed over the allowance.
According to the notification, the hike in the allowance had been implemented from July 1 this year.
The federal government had also issued a notification to increase the pension by 17.5%.
According to the notification issued by the finance ministry, the pensions of all former workers of the federal government, including retired civil and armed forces employees, had been approved from July 1.
Besides, the federal government had also increased the orderly allowance of officials from Grade 20 to Grade 22.
Read More IMF assured of $8b external payments
According to a notification, the orderly allowance had been jacked up from Rs17,500 to Rs25,000 per month.
The rate of deputation, additional charge, and special pay current charge allowances had been maintained. However, the maximum amount had been increased from Rs12,000 to Rs20,000.
The conveyance allowance for disabled employees had been hiked by 100% — from Rs2,000 to Rs4,000. Similarly, the Employees Old-Age Benefit Institution (EOBI) pension had been increased from Rs8,500 to Rs10,000.
At present, the EOBI gives Rs4 billion to its 430,000 registered pensioners.