SED Punjab

Grant Of 15% Disparity Reduction Allowance 2022 To Federal Employees

As you know that all govt. employees had announced a strong protest against the federal govt a few days ago and demanded to raise the salaries because the recent way of inflation hit them a lot. The federal Govt. and federal finance minister Shokat Tareen agreed to give them a 15% disparity reduction allowance to all federal govt employees w.e.f 1st March 2022.

Today(23 Feb 2022) finance division Government of Pakistan Finance Division(regulations wing) has issued a memorandum according to the Office Memorandum (OM) issued by the Finance Division, the approval of the federal government for grant of Disparity Reduction Allowance @ 15% pay of Basic Pay Scales 2017 w.e.f. 1st March 2022. This allowance is admissible to civil employees in BPS 1-19 of the Federal Government (including employees of the Federal Secretariat, attached departments subordinate offices) who have never been allowed additional allowance/ allowances equal to or more than 100% of the basic pay when not) or performance allowance subject to the followings conditions

Terms & Conditions Of Disparity Reduction Allowance 2022

(1) This Allowance will not be admissible to the employees of organizations who are drawing additional allowance/allowances equal or more than 100% of the basic pay(whether frozen or otherwise).

(2) This allowance will be frozen at the level drawn on 1st March 2022.

(3) This Allowance will be subject to Income Tax.

(4) This Allowance will be admissible during leave and the entire period of L.P.R. except during extraordinary leave.

(5) This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent.

(6)This Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad:

(7) 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:

(8) This Allowance will be admissible during the period of suspension.

(9)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

Notification Disparity Reduction Allowance 2022

Disparity Reduction Allowance 2022

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