ISLAMABAD: The government has issued notification of a 15 percent rise in federal employees’ salaries in grades 1 through 19 with effect from March 1, 2022.
In an Office Memorandum (OM) it has been directed to convey the federal government’s consent for the grant of Disparity Reduction Allowance at 15 percent of the Basic Pay Scales 2017 w.e.f. March 1, 2022.
All the principal accounting officers and heads of the departments are requested to ensure the compliance of this OM in letter and spirit.
This allowance will be available to federal civil employees in BPS 1-19, including employees of the Federal Secretariat, attached departments, and subordinate offices, who have never been granted additional allowance/allowances equal to or greater than 100 percent of basic pay or performance allowance.
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This allowance will not be admissible to the employees of the organizations who are drawing additional allowance/allowances equal to or more than 100 percent of the basic pay(whether frozen or otherwise).
The allowance will be frozen at the level drawn on 1st March 2022 and it will be subject to income tax. It will be admissible during leave and the entire period of LPR except during extraordinary leave. This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent.
Moreover, the allowance will not be admissible to the employees during the tenure of their posting/deputation abroad and will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad.
The allowance will be admissible during the period of suspension. And the term ‘Basic Pay’ will also include the amount of Personal Pay granted on account of the annual increment (s) beyond the maximum of the existing pay scales.
All the principal accounting officers and heads of the departments are requested to ensure the compliance of this OM in letter and spirit.
