Govt plans to impose PAYE taxes on public servants salaries, while giving a Rs 2,500 salary hike

Putting in place a much-needed reform, the government is planning to impose PAYE taxes on public servants salaries, while giving a minimum of Rs. 2,500 salary increase. Putting in place a much-needed reform, the government is planning to impose PAYE taxes on public servants salaries, while giving a minimum of Rs. 2,500 salary increase. But the salary for PAYE purposes would be assumed at half the gross salary.

All additional income of public servants would be taxed in the same way as their private sector counterparts.

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Public servants earning between Rs 3250 and Rs 9000 would get a 70% increase, but only half would be given this year.