Finance Division, Government of Pakistan has issued the final confirmed circular on 3rd March, 2021 regarding the notification of salary increase 25% disparity reduction allowance 2021 for federal Govt employees. The details of the complete notification is given below and clarification of 25% disparity reduction allowance on running basic pay according to the scale revised in 2017.
Grant of 25% (DRA) Salary Increase Notification 2021
Deputy Secretary is directed to convey the approval of the Federal Government for grant of Disparity Reduction Allowance @ 25% (Increase in Salary) of the basic pay of Basic Pay Scales 2017 w.e.f. 1st March, 2021. This allowance shall be admissible to civil employees in BPS-1 to BPS-19 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 following conditions:
Clarification of 25% Pay Increase Notification Admissibility Conditions:
- This Allowance will not be admissible to the employees of the organizations as mentioned in Annexure-l and those employees who are drawing additional allowance/allowances equal to or more than 100% of the basic
pay(whether frozen or otherwise);
- The allowance will be frozen at the level drawn on 1st March 2021.
- The 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.
All the Principal Accounting Officers and Heads of the departments are requested to ensure the compliance of this O.M in letter and spirit.
Any issues arising out of the implementation of finance division salary increase notification will be resolved by a committee notified vide Finance Division O.M.No.F.14(1)R-3/2021-91 dated 3rd March 2021.
List of Ministries/Divisions/Departments Eligible For 25% Allowance 2021
- President’s Secretariat (Public), Islamabad.
- President’s Secretariat (Personal), Islamabad.
- Prime Minister’s Office (Public), Islamabad.
- Prime Minister’s Office (Internal), Islamabad.
- National Assembly Secretariat, Islamabad.
- Senate Secretariat, Islamabad.
- Election Commission of Pakistan, Islamabad.
- Supreme Court of Pakistan, Islamabad.
- Federal Shariat Court, Islamabad.
- Auditor General of Pakistan, Islamabad.
- Controller General of Accounts, Islamabad.
- AGPR, Islamabad/Lahore/Peshawar/Karachi/Quetta.
- Military Accountant General, Rawalpindi.
- All JS(expenditure / DS Expenditure) attached to Ministries/ Divisions etc and all officers of Finance Division.
- Chief Accounts Officer, M/o Foreign Affairs, Islamabad.
- All Chief Secretaries/Finance Secretaries of the Government of Punjab/Sindh/Khyber Pakhtunkhwa/Balochistan/Azad State of Jammu & Kashmir and Gilgit Baltistan with the recommendation to consider adopting the proposed disparity allowance for their employees to be funded from provinces own resources.
- Federal Public Service Commission, F-5/1, Agha Khan Road, Islamabad.
- Secretary, Wafaqi Mohtasib Islamabad (Ombudsman)’s Secretariat
- Central Directorate of National Savings, Islamabad.
- National Accountability Bureau, Islamabad.
- Intelligence Bureau, Islamabad.
- Pakistan Mint, Lahore.
- Dte. Gen, Pakistan Post, Islamabad.
- Secretariat Training Institute, Islamabad.
- Directorate General of Inspection & Training, Customs & Central Excise, 8th Floor, New Customs House, Karachi.
- Federal Tax Ombudsman’s Secretariat, Islamabad.
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List of Organizations Employees Drawing Extra Allowance 2021
- President / PM Secretariat
- Federal Board of Revenue (FBR)
- Health personnel / Health establishments
- National Accountability Bureau (NAB)
- All Superior Courts
- Law & Justice Commission of Pakistan
- Islamabad Capital Territory Police
- National Highways & Motorways Police
- Islamabad Model Traffic Police
- Airport Security Force (ASF)
- Civil Armed Forces
- Intelligence Bureau
- Inter Services Intelligence
- Federal Investigation Agency
- National Highways & Motorways Police
- National Assembly
- Senate Secretariat
- Parliamentary Affairs Division
- District Population Welfare Office
- Clinical Regional Training Institute
- Directorate General of Special Education
- National Institute of Rehabilitative Medicines
- National Institute of Special Education
- Rehabilitation Centre for Children with Development Disorders Islamabad
- National Council for Rehabilitation
- National Braille Press Islamabad
- Rehabilitation Unit Vocational Rehabilitation & Employment of Disabled persons Ibd.
- National Mobility & Independence Training Centre
- National Training Centre for Special Persons G-9/2 Islamabad
- Vocational Rehabilitation & Employment of Disabled persons SC-1 lbd
- Provision of Hostel facilities at NSEC VHC Islamabad
- National Special Education Centre for PHC Islamabad
Implementation of 25% Disparity Reduction Allowance 2021
Deputy Secretary Finance Department, Govt of Pakistan has also issued office memorandum for the constituting committee to resolve issues arising during implementation of 25% disparity reduction allowance (DRA).
The undersigned is directed to say that the following committee is hereby constituted to resolve the issues arising during implementation of Disparity Reduction Allowance granted vide Finance Division O.M.No.F.14(1)R-3/2021-90 dated 3rd March 2021:
- Additional Finance Secretary (Regulations). Finance Division. Chairman
- Joint Secretary (Regulations), Finance Division. Member
- Deputy Military Accountant General. Member
- Additional Accountant General Pakistan Revenues Member
- An Officer of the status of Joint Secretary from Concerned Ministry/Division Member
- Deputy Secretary (R-I), Finance Division Secretary/Member 2.
All Ministries/Divisions/Departments may identify the bona-fide cases in the light of eligibility as contained in Finance Division’s above referred O.M and refer them, with specific recommendations of the PAO of the line Ministry/Division, to the Member/Secretary, Committee, Finance Division, Islamabad upto 30-06-2021. The committee will examine and submit its recommendations for the approval of the Secretary Finance.