Summary of Disparity Reduction Allowance For KPK Employees 2021

KPK Government, Finance Department Secretary Atif Rehman has issued the notification of summary for the chief minister to the grant of Disparity Reduction allowance 2021. The further details of the letter is given below;


KPK Government 25% Disparity Allowance 2021 Summary Details


The Federal Government issued a notification F. No. 14(1)R-3/2021-90 for the reduction of disparities in wages among those Federal Government employees who have an allowed any additional allowances greater than or equal to 100% of basic pay, weather frozen or otherwise (Annex-A).

The new Disparity Reduction Allowance is admissible for all civil employees in BPS-1-19 of the Federal Government, with the exception of employees of departments and organizations included in a negative list (Annex-B), who draw additional allowances greater than or equal to 100% of basic pay, whether frozen or otherwise.


Read More: Notification of Grant of Disparity Allowance Punjab Govt 2021


Following the issuance of the above-mentioned notification by the Federal Government, employees of various Provincial Government departments and organizations have held discussions on a similar allowance.

The Provincial Government has been empathetic to the needs of both its employees and its citizens, with the flagship Sehat Card universal health coverage program standing out as a recent example, as well as allowances and upgradations for several cadres and employee groups. Introducing a Disparity Reduction Allowance @ 25% of Basic Pay Scales 2017 would have a huge annual financial implication of around Rs. 20 billion.


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


The resulting adverse effect on the provincial finances and potential impact on the development budget may be taken into consideration while deliberating upon the proposed allowance.

The Chief Minister, Khyber Pakhtunkhwa is requested to kindly allow to place the disparity reduction allowance before Cabinet for consideration and approval.

Summary of Disparity Reduction Allowance For KPK Employees 2021

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