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Ministry notifies 25pc Disparity Reduction Allowance for civil employees in BPS 20-22


ISLAMABAD – The Ministry of Finance has notified 25 percent Disparity Reduction Allowance for the civil employees in BPS 20-22 of the federal government. The Ministry has directed to convey the approval of the federal government for grant of Disparity Reduction Allowance © 25% of the basic pay of Basic Pay Scales 2017 w.e.f. 1st July, 2021. This allowance shall be admissible to civil employees in BPS 20-22 of the federal government, (including employees of the Federal Secretariat and attached departments), who have never been allowed additional allowance/allowances equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance subject to the few conditions. This Allowance will not be admissible to the employees of the organizations who are drawing additional allowance equal to or more than 100% of the basic pay (whether frozen or otherwise). This allowance will be frozen at the level drawn on 1st July 2021. This allowance will be subject to Income Tax. This allowance will be admissible during leave and entire period of L.P.R. 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. This allowance 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. This allowance will be admissible during the period of suspension. The term “Basic Pay” will also include the amount of Personal Pay granted on account of annual increment (s) beyond the maximum of the existing pay scales. Meanwhile, the Ministry has constituted a committee to resolve the issues arising during implementation of Disparity Reduction Allowance granted. Additional Finance Secretary (Regulations), Finance Division would be the chairman of the Committee and other members included Joint Secretary (Regulations), Finance Division, Deputy Military Accountant General, Additional Accountant General Pakistan Revenues, An Officer of the status of Joint Secretary from Concerned Ministry/Division and Deputy Secretary (Finance Division Secretary/. All Ministries/Divisions/Departments may identify the bona-fide cases in the light of eligibility as contained in Finance Division’s above referred 0.M and refer them, with specific recommendations of the PAO of the line Ministry/Division, to the Member/Secretary, Committee, Finance Division, Islamabad upto 30-09-2021. The committee will examine and submit its recommendations for the approval of theSecretary Finance.



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