The Ministry of Finance and Revenue has hinted that there will be no immediate increase in salaries of Government employees . This announcement came despite the threats by various government organisations and labour unions to go on strike from January 12.
As per the details, employees of Government Organizations, pensioners and labour unions have announced to carry out an indefinite sit-in in Islamabad from 12th of January, 2021. Government employees have demanded an increase in their basic salaries by up to 100 per cent, besides an increase in medical allowance, house allowance, conveyance allowance, and up-gradation of posts of the clerks.
The government employees are also demanding to bring wages of different departments at parity .
In a meeting chaired by Finance Minister Abdul Hafeez Sheikh and attended by key cabinet ministers and the Pay and Pension Commission chairperson., no decision was taken for increasing the wages while asking the government to handle the protestors ‘administratively’ only.
The Interior Ministry has informed that employees of more than 60 organisations/labor unions are protesting which include Utility Stores Corporation, Pakistan International Airlines,PIMS, Allama Iqbal Open University, Radio Pakistan, PTCL, Oil and Gas Development Company Limited (OGDCL), pensioners and labour unions have called for a protest inside the red zone on January 12.
The initial estimates of the Ministry of Finance show that if the government yield to demands of protestors, it will cost an additional Rs. 100 billion per year to the government which the government cannot bear due to budget deficit.
In the previous year’s budget, the government didn’t increase the salaries of government employees despite higher inflation.