Sunday July 14, 2024

Bureaucrats on boards can no longer get over Rs1m in a fiscal year

Extra amount will be deposited in the government treasury

By Our Correspondent
July 11, 2024
Federal Minister for Finance & Revenue Muhammad Aurangzeb chairing a meeting of the Cabinet Committee on State-Owned Enterprise on July 4, 2024. — APP
Federal Minister for Finance & Revenue Muhammad Aurangzeb chairing a meeting of the Cabinet Committee on State-Owned Enterprise on July 4, 2024. — APP

ISLAMABAD: The government has restricted public servants, telling them they can draw maximum remuneration of Rs1 million in a financial year as member of board of companies and organisations. The extra amount will be deposited in the government treasury. The government has also issued a notification for raising salary and pension from July 1, 2024.

According to an Office Memorandum (OM) issued by the Ministry of Finance on Wednesday, the government servants appointed to board of companies/organisations and who become entitled to fee shall only be allowed to retain remuneration to a maximum of Rs1.0 million in a financial year.

The Ministry of Finance has used the wrong word in the notification which states any amount in access (instead of excess) of Rs1.0 million received shall be deposited by the officer in government treasury. The record of the same shall be provided to administration wing of the respective ministry/division.

The OM states the President has sanctioned from July 1, 2024 an Ad hoc Relief Allowance-2024 to all federal government employees. The employees include armed forces personnel, civil armed forces and civil employees. The rate of Ad hoc Relief Allowance is from BPS-1 to 16 @ 25pc of Running Basic Pay and BPS-17 to 22 @ 20pc of Running Basic Pay.

The amount of Ad hoc Relief Allowance-2024: i) will be subject to Income Tax; ii) will be admissible during leave and entire period of LPR except during extra ordinary leave; iii) will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent; iv) will not be admissible to employees during the tenure of their posting/deputation abroad; and v) will be admissible to 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 term “Basic Pay” for the purpose of Ad hoc Relief Allowance-2024 will also include amount of personal pay granted on account of annual increment (s) beyond the maximum of existing pay scales. The Ad hoc Relief Allowance-2024 shall be accommodated from budgetary allocation for year 2024-25 by the respective ministries/divisions/departments. No supplementary grants would be given on this account.

Another notification states the President has sanctioned an increase @ 15pc of net pension from July 1, 2024 to all civil pensioners of federal government, retired armed forces and civil armed forces personnel. The increase in pension @ 15pc will also be admissible to pensioners who would retire on or after July 1, 2024.

For the purpose of admissibility of increase in pension sanctioned, the term “Net Pension” means “pension being drawn” minus “Medical Allowance”. The increase will also be admissible on family pension granted under Pension-cum-Gratuity Scheme, 1954, Liberalised Pension Rules, 1977, on pension sanctioned under Central Civil Services (Extra Ordinary Pension) Rules and on Compassionate Allowance under CSR-353.

If the gross pension sanctioned by federal government is shared with any government in accordance with the rules, amount of increase in pension will be apportioned between federal government and other government concerned on proportionate basis. The increase in pension will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetised value of a driver or an orderly.