The Federal government has notified the 15% disparity reduction allowance to civil employees in BPS 1-19 of the federal government, which is applicable from 1 March 2022.

As per the Office Memorandum of Finance division that the federal government has approved disparity reduction allowance at the rate of 15 percent of the Basic Pay scales 2017 with effect from March 2022.

According to the notification, this allowance shall be admissible to civil employees in Basic Pay Scale (BPS) 1-19 of the Federal Government, including employees of the Federal Secretariat, attached departments, and subordinate offices.

The notification also mentioned several other conditions. The employees drawing additional allowance equal to or more than 100 percent of their basic pay, whether frozen or not, will not be provided with the 15 percent allowance.

Further, the newly granted allowance will be frozen at the level drawn on 1 March 2022, and it will be subject to income tax. The allowance will also be granted to the employees on leave and the entire period of LPR except during extraordinary leave.

The Finance Division further stated that this allowance will not be treated as part of emoluments for the purpose of calculation of pension or gratuity and recovery of house rent. In addition, the allowance will not be admissible to the employees during the tenure of their deputation in foreign countries. However, the employees will be granted the allowance on their repatriation at the rate and amount, which would have been admissible to them, had they not been posted abroad. The allowance is also applicable to the employees during the period of suspension.

The notification clarified that the term “Basic Pay” will also include the amount of Personal Pay granted on account of annual increment beyond the maximum of the existing pay scales.

Source: Pro Pakistani