The government has confirmed its promise to not provide salary or pension increases beyond those specified in the first quarter of the fiscal year 2024 (Q1). This is a big milestone.
This commitment is consistent with the Memorandum of Economic and Financial Policies that was agreed upon with staff members of the International Monetary Fund (IMF) as part of the initial assessment of the Stand-By-Arrangement.
This Sunday’s release of the pertinent documents clarified the government’s position on budgetary responsibility.
Government clerks expressed their displeasure on January 18, 2024, in spite of this pledge. For grades 1 through 16, the clerks pushed for a 70% increase in housing, medical, and transportation allowances in addition to a 10% increase in the disparity reduction allowance.
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The All Government Employees Grand Alliance (AGEGA) Chief Coordinator reportedly communicated the alliance’s opposition to pension changes and the provision of disparity allowances for workers in grades 1 through 16. This information was reported by the Business Recorder.
The Chief disclosed that the Finance Division had moved a summary of the proposed pension reforms and requested feedback on them from the Ministry of Interior, the Law and Justice Division, and the Establishment Division.
Employees of the federal government would be entitled to a gross pension, including penalties for early retirement, equal to 70% of the average pensionable emoluments drawn over the last 36 months of service before retirement, under the proposed revisions.
Additionally, the proposal states that an employee may opt for an early retirement following 25 years of service, but with a 3% annual reduction in gross pension from the year of retirement until the employee reaches superannuation age.
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For a maximum of ten years, the surviving eligible family members would be eligible to receive family pensions upon the death or disentitlement of the spouse. Family members would be eligible for Shuhada Pension for a period of 20 years following the death or disentitlement of the spouse.
Furthermore, a pensioner’s family pension would continue to be admissible throughout the duration of the pensioner’s children provided they were special needs or disabled.
Another noteworthy item is the clause that permits federal employees to commute up to 25% of their gross pension at retirement, as opposed to the current 35%, provided they meet the guidelines set forth by the federal government.
