With the nearing end of the existing fiscal year and the beginning of the new fiscal year the Federal Budget 2024-25 approaches, there is widespread discussion regarding a possible compensation hike for government personnel.
In the next 2024-25 budget, the government plans to boost public sector salaries by 10 to 15%. This action is part of a larger effort to implement comprehensive pension changes, including restrictions on multiple pensions.
The Ministry of Finance is considering a modest 10% pay increase. However, due to anticipated pressures, the growth might be reduced to 12.5, or even 15%.
Senior Officer Car Monetization Increases (BPS 20, 21, 22)
For top officials in grades 20, 21, and 22, the government is mulling a 20 to 25 percent increase in car monetization. Currently, officers in these categories monetize automobiles at monthly rates of 67,000, 77,000, and 87,000 rupees, respectively.
Taxation on High Pensions (Over One Lakh Rupees)
The administration is planning to implement pension reforms in the upcoming budget. One suggestion under consideration is to tax retirees earning more than one lakh rupees per month. The government may implement various tax brackets for higher-income pensioners.
Extension of Retirement Age for the Public Sector
Another idea is to raise the age restriction for public sector employees from two to five years. This would be part of an overall pension reform package.
Federal employees have the option of a lump-sum pension.
Under the proposed revisions, federal government employees may be eligible for a lump-sum pension. This would be based on 70% of the average pensionable earnings generated in the past 36 months before retirement.
Early Retirement and Reduced Pension
After 25 years of service, government personnel have the option of retiring early. However, they may suffer a 3 percent annual penalty for reducing their lump-sum income from the year of retirement to the age of retirement.
Family Pension Regulations: Duration, Martyrs, and Disabled Children
Following the death or disqualification of a spouse, the surviving family members may be eligible for a family pension for up to ten years. In the case of a martyr’s pension, the family may collect it for up to 20 years. The family pension might be provided to any pensioner’s crippled or exceptional children for the rest of their lives.
Pension Option for Re-employed Government Retirees.
Federal government employees may be given the option of reducing their lump-sum pension by up to 25% at retirement. If a federal government pensioner gets re-employed/posted after retirement, they have the option of keeping their pension or drawing the pay from the new job throughout the duration of work. If a person is eligible to more than one pension, they may choose to receive any of them.
As the expectation grows, all eyes are now focused on the Federal Budget 2024-25 releases, which will finally reveal the secret of the pay rise in budget 2024-25.