Incentive Allowance for Projects/Programs/Policy Units/Companies/Foundations

Government of the Punjab, Finance Department has issued the official Notification letter on 31st December, 2019 in connection with Incentive Allowance for Projects/Programs/Policy Units/Companies/Foundations.

Read More: Incentive Allowance Punjab Notification 2021 Latest

I am directed to refer to the subject cited above and state that the Competent Authority has been pleased to decide that In Super-session of this department’s letter No. FD.SR.I/9-20/2006 dated 27.07.2018, the in-service regular Government Servants so appointed / posted in Projects, Programs, Policy Units / Policy Cells / Companies / Authorities, Foundations and Funds shall be entitled to grant of “INCENTIVE ALLOWANCE” under object code “A-01250” in addition to their admissible salary (Substantive pay + admissible allowance) under the respective pay scales with effect from 23.09.2019 at the following rates:-

Rates of Incentive Allowance Punjab


Basic Scale

Incentive Allowance (Amount in Rupees)


BS-22 300,000-350.000
2. BS-21






BS-19 150,000-200.000
5. BS-18



BS-17 75,000-100,000
7. BS-16



BS-11-15 40,000
9. BS-05-10





The above mentioned Incentive Allowance shall be admissible subject to the following conditions:-

a). It will be applicable for all Projects, Programmes, Policy Units, Policy Cells, Companies, Authorities, Foundations and Funds.

b). It will be reviewed annually by the “Selection Board” constituted vide Order No. FD.SR-II/1-12/2009, dated 22.10.2019.

c). Appointments against the posts of Project Directors, Directors General, Chief Executive Officers, Managing Directors and Head of an entity, whatever the designation may be, to the extent of Government Servants should be made by respective competent authority on the recommendations of the “Selection Board”.

As regards other posts to the extent of Government Servants, these shall be processed in the prescribed manner for recruitment, but the proposed Incentive Allowance shall be placed before the said Board for consideration.

d). For Private sector employees, appointment against the post of Head of an entity, whatever the designation may be, or other subordinate posts should be made by the relevant prescribed channels of recruitment under their relevant law, rules, regulations etc.

e). In case, Executive Allowance is admissible on a post, then there will be an option to choose either of one.

All Administrative Secretaries are requested to ensure the implementation of the above mentioned conditions.

Incentive Allowance for Projects Programs Policy Units Companies Foundations-2 Incentive Allowance for Projects Programs Policy Units Companies Foundations

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