The 17-Year Pay Issue: Civil Servant’s Fight for 0.08%
Federal employee Abdul Rasheed Memon battled for what looked small—a 0.08% wage increase shortfall—for 17 years. Originally promised a 15% raise, “rounding off” under international accounting standards caused his pay to climb by 14.92%. Reaching the Supreme Court in 2024, his lawsuit tested judicial precedent and the boundaries of government compensation programs.
Key Learnings from the Supreme Court’s Decision
Justices Muhammad Ali Mazhar and Syed Hasan Azhar Rizvi ruled on December 20, 2024:
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The Finance Division properly used the point-to-point calculation with rounding, following worldwide standards (IFRS/GAAP).
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Error of the Federal Service Tribunal: Ignoring a 2022 Supreme Court order endorsing rounding policies.
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Legal doctrine holds that courts cannot meddle in policy decisions unless they are “arbitrary or illegal” (Justice Khurshid Bhinder v. Federation, PLD 2010 SC 483).
Why This Case Counts
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The Court confirmed that small rounding errors—such as 14.92% against 15%—do not breach pay rules for civil servants.
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✅ Global Standards: Pakistan calculates salaries using IFRS/GAAP, a method now generally approved by courts.
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Lower courts must follow Supreme Court decisions (stare decisis), thereby avoiding “per incuriam” (ignorance of law) mistakes.
