25pc disparity allowance from BPS-20 to 22 notified

ISLAMABAD: Barring 58 institutions/departments where employees are already getting extra allowances, including the President/PM Secretariat, FBR, all superior courts, NAB, IB, ISI and many others, the government has notified for granting 25 percent disparity allowance from BPS-20 to 22 with effect from July 1, 2021.

According to Office Memorandum (OM) issued by the Finance Division, 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 was conveyed.

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 100pc of the basic pay (whether frozen or not) or performance allowance subject to the following conditions: This allowance will not be admissible to the employees of the organizations as mentioned in Annex-I (such as President/PM Secretariat, FBR, NAB, all superior courts, NHA, Airport Security Force, ICT, Civil Armed Forces, Intelligence Bureau, ISI, FIA, Senate Secretariat, National Assembly and many others) and those employees who are drawing additional allowance/allowances equal to or more than 100pc 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 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; 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.