The federal government is considering a 15-20 per cent increase in the salaries and pensions of government employees in the form of interim relief.

According to sources in the Ministry of Finance, it has been decided to hire a private company to address the wide pay gap between the employees of various ministries, divisions and departments and for rationalized pay and pension reforms.

The private company will first review the pay and pension structure and then conduct a comprehensive study and make recommendations to the government which will require a period of six months.

The Pay and Pension Commission will work with the recommendations of the sub-groups set up and in collaboration with the private firm to propose a plan to reform the pay and pension system.

It may be recalled that the federal budget for the next financial year 2021-22 is expected at the beginning of next month, due to which a proposal for an interim relief of 15 to 20 per cent in the salaries of government employees is under consideration in the next budget till the complete study of the private company.

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