The federal cabinet on Friday approved a 15% increase in the salaries of the federal government employees and a 5% increase in pensions, sources said.
The decision comes less than an hour before the Prime Minister Shehbaz Sharif-led government is set to present its first budget.
Federal Information Minister Marriyum Aurangzeb took to Twitter and said: “The Prime Minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet.”
She added that the adhoc allowances have also been merged into the basic pay.