The federal government has excluded any increase in wages and pensions for public sector employees in the upcoming budget, Finance Minister Muhammad Aurangzeb confirmed in a written response to the National Assembly.

During the question time, Aurangzeb declared that there is not taking into account paying scales, quotas or pensions for government employees in the next financial year.

However, he mentioned that the government is reviewing the ceiling and employment limits for workers in the public sector.

The announcement comes at some point of rising inflation, with many government employees hoping for financial relief in the upcoming budget.

The decision is expected to trigger concerns among workers in the public sector who have struggled with the rising costs of living.

While the government continues to assess its economic policies, the lack of a salary increase can add the financial burden to employees. The upcoming budget is likely to be closely monitored by various stakeholders when discussions about financial measures are taking place.

Earlier this month, the government announced significant changes in pension calculations and introduced new conditions and restrictions.

A notification issued on Wednesday stated that pension will now be calculated on the basis of the average salary of the last 24 months rather than the final salary. In addition, employees are no longer allowed to receive more pensions.

According to the announcement, the new calculation does not apply to employees who choose voluntary retirement. Furthermore, incremental increases in the last service year will not be included in the average pension calculation.

The government has also revised the pension increase mechanism for existing pensioners, which ensures that family pension is now calculated on the basis of net values.