Federal Budget 2024-25: Changes to Salary Tax Rates and Proposed Salary Increases
Getting your Trinity Audio player ready...

Amidst various economic challenges, the federal government is gearing up to unveil its inaugural budget for the fiscal year 2024-25 in June.

Yearly, both federal and provincial government employees eagerly anticipate the budget announcement, as it typically entails adjustments to their salaries in consideration of factors like inflation.

With concerted efforts to curb inflation, the government aims to bring it within the targeted range of 5 – 7 percent by September 2025.

Read Also: Govt Employees Facing Loss of Medical and Housing Subsidies in Upcoming Budget

March witnessed a decline in headline inflation to 20.7 percent year-on-year from February’s 23.1 percent, while core inflation also saw a significant drop to 15.7 percent from 18.1 percent in February.

The Monetary Policy Committee of the State Bank of Pakistan anticipates that inflation will continue its downward trend.

Traditionally, both federal and provincial governments have announced salary increments for their employees in the budget.

Anticipated for the upcoming fiscal year 2024-25, the governments are expected to introduce a 10 percent salary increase for employees. However, the final decision rests with the governments, pending a review of recommendations by the finance ministry.

If approved, the salary increment will be effective from July 2024.

By Author

Leave a Reply

Your email address will not be published. Required fields are marked *