Agreement Between AGEGA & Government of Pakistan Reach Landmark for Employees’ Benefits:
In a major development, the Government of Pakistan and All Government Employees Grand Alliance (AGEGA) have reached an agreement to improve salary structures, allowances, and job security for government employees across Pakistan. The agreement addresses long-standing demands, including salary disparity, pension reforms, tax reductions, and upgradation of posts.
Key Highlights of the Agreement:
✔ Salary Increase: Depressed salaries to see a 150% raise over time, with an initial 30% increase in Budget FY 2025-26.
✔ Allowances Enhancement: House rent, medical, and conveyance allowances will be reviewed and increased in the next budget.
✔ Pension Reforms & Leave Encashment: Employees’ concerns will be considered in a special sub-committee.
✔ Job Regularization: A new policy committee will assess regularization of contingent-paid, contract, and daily wage workers.
✔ Tax Relief: Tax slabs to be reviewed, and the teachers/researchers tax rebate reinstated.
This agreement marks a significant step towards better working conditions and financial relief for thousands of government employees. The government aims to implement these measures gradually, considering fiscal space, while ensuring fair compensation for public servants.
AGREEMENT BETWEEN ALL GOVERNMENT EMPLOYEES GRAND ALLIANCE (AGEGA) AND
GOVERNMENT OF PAKISTAN
| Sl.No. | Demand of the AGEGA | Government of Pakistan’s Commitments |
| 1. | Employees still having depressed salaries should be granted 150% increase. | Agreed-Such employees who have already been granted 40% DRA (25% +15% ), an increase of 30% DRA-2025 will be granted to them in the Federal Budget FY 2025-26 to reduce disparity in their salaries, which will be subsequently enhanced to 100% in succeeding years subject to fiscal space. |
| 2. | a) Rate of House Rent, Medical and Conveyance Allowance to be increased by 100%. b) Hiring of accommodation to be increased as per recommendation of M/o Housing and Works. | a) The increase in House Rent, Medical and Conveyance Allowance will be considered at the time of Budget FY 2025-26 subject to sufficient fiscal space. b) Agreed-The hiring rates will be increased as per recommendations of M/o Housing and Works. (The case is already under consideration in Finance Division). |
| 3. | a) Pension Reforms b) Leave Encashment | a) If AGEGA have some concerns/recommendations regarding pension reforms, Finance Division will give those recommendations due consideration. The Sub-Committee constituted under the Chairmanship of Mr. Tariq Fazal Chaudhary, Chief Whip/MNA can submit its recommendations to the Finance Division. b) The matter relates to Punjab Government. The Honourable Adviser to PM on Political Affairs/Minister for IPC Mr. Rana Sanaullah will take up the issue of leave encashment and other Punjab Govt. Employee’s demands/issues with the Punjab of Government. |
| 4. | Privatization of SoE and Schools | The Government may consider constitution of the committee for betterment of these entities. |
| 5. | Regularization of contingent paid, daily wage, contract, adhoc, TLA and invalid employees’ children in lines of Mr. Khurshid Shah Committee. | A Committee may be constituted under the Chairmanship of Mr. Ali Pervaiz Malik, Minister of State for Finance and Revenue, for reviewing and recommending policy measures in the matter without compromising the rightsizing decision of the Federal Government. |
| 6. | Up-gradation of posts on the analogy of Provinces and the employees who got next higher scale as one time dispensation (specially class-IV) may be given pay, allowances and perks/ privileges of their next higher scale. | a) A joint Committee of Establishment Division and Finance Division will consider and formalize recommendations for this up- gradation at the time of Budget FY 2025-26. b) Agreed. The pay, allowances and perks/ privileges of next higher scale will be allowed to those employees who got one time dispensation. |
| 7. | a) Revision/reduction of Tax slabs on employees. b) Withdrawal of Teachers/Researchers tax rebate 25% | a) Agreed- The review of tax slabs will be undertaken at the time employees. of Budget FY 2025-26 in consultation with FBR. b) Agreed- The letter regarding withdrawal of tax rebate to Teachers/Researchers will be withdrawn ab-mito. |
| 8. | Appointment against PM’s Assistance Package, 17-A may be restored. | The matter is sub judice/court case, however, the Sub-Committee constituted under the Chairmanship of Mr. Tariq Fazal Chaudhary, Chief Whip/MNA will take up the matter with Establishment Division and M/o Law and Justice for tangible solution. |
| 9. | Enhancement of Allowance for Disabled Employees in line with Provincial rates. | Agreed, will be done at the time of Budget FY 2025-26. |
| Representatives of AGEGA | Representatives of GoP |
| (REHMAN ALI BAJWA) Chief Coordinator All Government Employees Grand Alliance (AGEGA) Pakistan | (RANA SANAULLAH) Adviser to PM on Political Affairs/Minister for IPC Government of Pakistan |
| (RAJA TAHIR MAHMOOD) President All Government Employees Grand Alliance (AGEGA), Pakistan | (ALI PERVAIZ MALIK) Minister of State for Finance and Revenue Government of Pakistan |
| (HAIDER AKHAN ASTANAZAI) Chairman All Government Employees Grand Alliance (AGEGA), Pakistan | (TARIQ FAZAL CHUDHARY) Chief Whip/MNA |
| (SYED ALI RAZA) PSP DIG (Hqrs) Security, Islamabad | (IRFAN NAWAZ MEMON) Deputy Commissioner, ICT Islamabad |
Government Employees to Benefit from New Pay & Allowance Reforms:
The recent agreement between the Government of Pakistan and AGEGA is a positive step towards financial relief and job security for public sector employees. With an initial 30% increase in salaries, upgraded allowances, and planned pension reforms, the deal sets a progressive path for improving government jobs.
Additionally, tax relief measures, an increase in hiring rates for government accommodations, and job regularization discussions will further enhance the financial security of thousands of employees. The government has committed to implementing these policies in phases, ensuring sustainable economic management.
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