Last updated on March 4, 2021
Office Memorandum | Grant of Disparity Reduction Allowance @ 25% on the Basic Pay Scale 2017 | Government of Pakistan Finance Division (Regulation Wing) | March 03, 2021
Office Memorandum | Grant of Disparity Reduction Allowance | Government of Pakistan Finance Division (Regulation Wing) | March 03, 2021
According to the notification, the federal government approved “grant of disparity reduction allowance at the rate of 25% on the basic pay of Basic Pay Scales 2017 with effect from 1st March 2021.
نوٹیفکیشن کے مطابق ، وفاقی حکومت نے یکم مارچ 2021 ء سے بیسک پے اسکیلز 2017 کی بنیادی تنخواہ پر 25٪ کی شرح سے تفاوت کم کرنے کے الاؤنس کی منظوری دی۔
List of Organizations/Employees Drawing Extra Allowances
The federal government has notified 25% ad-hoc allowance for civil employees of up to grade-19 but excluded about five-dozen departments that are already availing higher than standard pay packages.
The superior courts and the armed forces will not be entitled to the ad-hoc allowance, as these departments along with nearly five-dozen more departments are already availing higher salaries.
The officers serving in grade-20 to -22 are also not entitled for the ad-hoc allowance, as if they are not affected by the double-digit inflation. But the Ministry of Finance has kept the doors open for the 58 excluded departments and constituted a committee that will review the requests for the raise.
The Ministry of Finance on Wednesday notified the increase in salaries on an ad-hoc basis with effect from March 1, in line with an agreement reached between the protesting government servants and members of the federal cabinet last month.
According to the notification, the federal government approved “grant of disparity reduction allowance at the rate of 25% on the basic pay of Basic Pay Scales 2017 with effect from 1st March 2021.”
Scores of the employees and labour unions had been demanding increase in the salaries after the government did not raise their pays in the last budget as part of the International Monetary Fund (IMF) conditions to cut expenditures.
The employees protested discrepancies in the salaries of various government departments. The Ministry of Finance has estimated the cost of the ad-hoc allowance at around Rs10 billion for this fiscal year.
This allowance will be admissible to civil employees in the basic pay scale of 1-19 of the federal government, including employees of the federal secretariat and attached departments.
The ministry said those departments that have never been allowed additional allowance equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance will be entitled for the disparity allowance.
The Ministry of Finance said all ministries, divisions and departments may identify the bona-fide cases in the light of eligibility as with specific recommendations of the secretary of the line ministry or division, to the committee by June this year.
The committee will examine and submit its recommendations for the approval of the secretary finance. The allowance has been granted on certain conditions.
The ad-hoc allowance has been frozen at the salary level drawn on March 1, 2021. This means that in case the government decides to increase the basic salaries in the next budget, the total amount of the allowance would not increase on the basis of new basic pay.
The government will also deduct income tax on the disparity allowance and it will be admissible during leave except during extra ordinary leave. This allowance will not be treated as part of emoluments for the purpose of calculation of pension, gratuity and recovery of house rent.
This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad but will be admissible during the period of suspension. The ministry said any issues arising out of the implementation of disparity reduction allowance will be resolved by a committee that has also been notified.
About 58 departments will not be entitled to claim the ad-hoc allowance.
These are the President House, the PM Secretariat, the Federal Board of Revenue, health personnel and health establishments, the National Accountability Bureau (NAB), all superior courts, the Law & Justice Commission of Pakistan, the Islamabad Capital Territory Police, the National Highways & Motorways Police, the Islamabad Model Traffic Police, the Airport Security Force, the Civil Armed Forces, the Intelligence Bureau, the Inter-Services intelligence, the Federal investigation Agency, the National Assembly and the Senate Secretariat.
Also, the other departments that will not be entitled to the additional allowance are the Parliamentary Affairs Division, the District Population Welfare Office, the Clinical Regional Training Institute, the Directorate General of Special Education, the National Institute of Rehabilitative Medicines, the National Institute of Special Education, the Rehabilitation Centre for Children with Development Disorders Islamabad, the National Council for Rehabilitation, the National Braille Press Islamabad and the Rehabilitation Unit Vocational Rehabilitation and Employment of Disabled Persons Islamabad.
All health and education departments, common unit of Manage Global Fund, the Federal Services Tribunal, the Federal Tax Ombudsman, the Appellate Tribunal Inland Revenue, the Customs Excise and Sales Tax Appellate Tribunal, the Environmental Protection Tribunal, accountability courts, special judge (Customs Taxation & Anti-Smuggling), special judge and courts would not be entitled.
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