Punjab Govt Employees 25% Increase in Salary Notification 2021

I am sharing the Salary Increase Employees as per a Copy of Budget Speech 2021-22 Punjab. The Punjab Government has announced Budget 2021-2022 on 14th June 2021. Federal Government has already announced the budget and increased the 10% salaries of the Federal Govt employees. The pay and allowances, as well as pension enhancement packages for the Punjab Government employees in Budget 2021-22, are as under:

Punjab Govt Employees 35% Salary Increase in Budget 2021-22

According to the Budget Speech 2021-22, the Government of Punjab feels the difficulties of Punjab Govt employees. Previous year Govt could not increase the salary and pension last year. Now the economic situation is better and Govt has decided to increase salaries by 10% of the basic pay.

The Punjab Govt employees who have not yet received any 100% or more allowances, will get 25% Special Allowance @ 25% of Basic Pay. There is a proposal for a 10% increase in the Pension of the Punjab pensioners.

  • The Finance Minister Punjab announced the following regarding pay/pension increase in Budget 2021-22 Punjab:
  • Adhoc Relief Allowance 2021 @ 10% of the running/current basic pay of the Revised Pay Scales 2017.
  • Special Allowance @ 25% of the basic pay of the Basic Revised Pay Scales 2017.
  • Pension increase @ 10% of the net pension minus medical allowance.

Punjab Govt Employees 35% Salary Increase in Budget 2021-22

Punjab Government, Finance Division has issued the official notification on 20th April 2021 in connection with 25% increase in salary grant of disparity reduction allowance 2021. The notification has been forwarded to the;

  1. Minister for Law & PA
  2. Minister for ICI&SD
  3. Minister for Agriculture
  4. Additional Chief Secretary, S&GAD
  5. Secretary Finance

Latest Updates of 25% Disparity Allowance Punjab Employees (04-6-2021):

As per the summary, the 25% Special Allowance Punjab on Initial of Revised Pay Scales 2017 instead of the running basic pay. If it is so then it will be a minor increase in salaries of the Punjab Government employees. The Federal Government granted Disparity Reduction Allowance 2021 on current basic pay. This is a summary and waits for the Notification of Special Allowance 2021 for Punjab Government Employees. That the Finance Department can issue within a couple of days or so.

The Ministerial Committee submitted various options in this regards to the Chief Minister, Punjab on 20.05.2021, who finally approved to grant a Special Allowances, 2021 @ 25% of Initial Basic PayScale, 2017 with effect from June 1st, 2021 for the employees in BS-1 to BS-19 who are drawing no additional allowance except usual pay and allowances vis-à-vis House Rent Allowance, Conveyance Allowance, Medical Allowance and Adhoc Relief Allowance 2016, 2017, 2018 and 2019 with the financial implication of Rs.2.460 Billion per Month (Annex-E).

The Chief Minister pleases that the instant matter should place before the provincial Cabinet for its consideration and approval (Annex-F). Proposal in para 5/ante is placed before the Provincial Cabinet for its consideration and approval.

Here is the update regarding the grant of 25 % Special Allowance to remove the Disparity of Pay for the Employees of Punjab Govt. The minutes of the meeting held on 31-05-2021 above mentioned subject. The further detail of these minutes of the meeting are as under;


As announced by Hon’ble Chief Minister Punjab dated 25.05.2021,  “the Government of Punjab has decided to give 25%  special allowance to those employees of BS-1 top BS-19 who are not getting any allowance other than their salaries from the next month so that difference may be reduced in their salaries to bring betterment in their economic condition ”. The matter will be followed up and expedited through the concerned forum


The matter regarding up-gradation of employees of National Health Programme with reference to note for Minister, Law and Parliamentary vide No.SO(C&C) 1-1/2020(M) Misc. dated 19.03.2021 will got expedited through the concerned department to finalize the matter.


One of the good news especially for the employees of Punjab, who are still waiting to see the official announcement/notification from Punjab Government. Finally, the Chief Minister Punjab Usman Buzdar has announced publicly through his official account regarding 25% Disparity Reduction Allowance (Special Allowance) to all the employees who are working under Punjab Govt. In this allowance, only BPS-01 to BPS-19 are included and they are not already getting any extra/special allowance. The detail of the letter and screenshot is given below;

We have decided to give 25% monthly special allowance from next month to the Punjab government employees from grade 1 to 19 who did not get any allowance other than salary so that the salaries of government employees working in various departments Reduce the gap and improve their economic situation.

پنجاب حکومت کے گریڈ 1 سے 19 تک کے وہ ملازمین، جن کو تنخواہ کے علاوہ کوئی الاؤنس نہیں ملتا تھا، انہیں ہم نے اگلے ماہ سے 25 فیصد ماہانہ سپیشل الاؤنس دینے کا فیصلہ کیا ہے تاکہ مختلف محکموں میں کام کرنے والے سرکاری ملازمین کی تنخواہوں میں فرق کم ہو اور ان کی معاشی حالت میں بہتری آئے۔

Latest Updates of 25% Disparity Allowance Punjab Employees

Grant of Disparity Reduction Allowance 25% Increase in Salary 2021

I am directed to refer to the subject noted above and to intimate that the Competent Authority / Chief Minister, Punjab has been pleased to constitute the Ministerial Committee (Annex-A) for a holistic review for reduction of disparities in pay of employees of Punjab Government and submit recommendations to the Provincial Cabinet to address the Issue in a fiscally sustainable manner.

I am further directed to state that the 2nd meeting is scheduled to be held on 21.04.2021 (Wednesday) at 12:15 P.M under the Chairmanship of Mr. Makhdoom Hashim Jawan Bakht, Minister for Finance / Convener of the Committee in the main Committee Room of Finance Department, Punjab Civil Secretariat, Lahore.

The Terms & Reference (TORs) of the Ministerial Committee are as under:

  1. Comprehensive mapping of the government servants in BS 1-22, who are drawing any Special Allowance(s) other than regular allowances.
  2. Examining any distortion / disparity in Pay and Allowances of the government servants working in various organizations / entities of the Punjab Government, with reference to recently approved Disparity Reduction Allowance (DRA) by the Federal Government
  3. Determine the financial impact of Disparity Reduction Allowance (DRA) for the forthcoming budget.

The Committee may involve stakeholders in consultative process before reaching to any recommendations.

It is, therefore, requested to please make it convenient to attend the said meeting on the given date, time and venue.

Grant of Disparity Reduction Allowance 25% Increase in Salary 2021

Secretary, Governor of the Punjab has issued the notification letter on 12th February, 2021 in connection with Punjab Govt employees 25% increase in salary notification 2021.

Read More: Finance Division Notification of 25% Salary Increase 2021 Latest

Latest News on 2nd March, 2021: According to the confirmed sources, the final notification of 25% salary increase will be issued today, Tuesday 2nd March or tomorrow, Wednesday, 3rd March, 2021 (Inshaa Allah). All the employees of Federal, Punjab, KPK, Sindh, Balochistan are requested to stay tuned with us.

Read More: Notification of Salary Increase 25% Disparity Reduction Allowance 2021 (Congratulation)

19th February, 2021: In the high level meeting chaired by Punjab Chief Minister Usman Buzdar, directs Cabinet Committee to Prepare Recommendations / Summary for Approval of 25% increase in salary allowance to Punjab Govt Employees from BPS-01 to BPS-19.

Read More: Latest Updates About 25% Salary Increase & Upgradation 2021

Because, the Federal Cabinet has approved the summary of 25% Disparity Allowance. I hope very soon the notification will be issued before the 1st March, 2021.
Punjab Govt Employees 25% Salry Increase News 2021 Latest

25% Salary Increase of Punjab Govt Employees 2021

Pursuant to the notification of Ministry of Interior, Government of the Pakistan, dated Islamabad, the 11th February, 2021 and directions contained therein.

Governor of the Punjab has been pleased to grant an adhoc relief allowance to all the Punjab Government Employees @ 25% of current basic pay with effect from 1st March, 2021 and this adhoc relief allowance shall be made part of the basic pay from 19 July, 2021 Approved by the order of Governor of the Punjab.

Punjab Govt Employees 25% Increase in Salary Notification 2021

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