The federal government is likely to increase salaries and pensions of the employees as budget for next fiscal year is set to be unveiled on Friday.
Sources said the finance bill has proposed 30 per cent increase in salaries of employees from Grade 1 to 16 and 20pc for Grade 17 and above.
They said 15 to 20pc increase had been proposed in pensions of retired government employees, adding that Rs780 billion had been proposed for pensions.
Sources said the federal cabinet would give final approval for increase in salaries and pensions tomorrow (June 9).