GRANT OF DISPARITY REDUCATION ALLOWANCE TO FEDERAL GOVERNMENT EMPLOYEES

 The Federal Government approved / granted Disparity Reduction Allowance @ 25% of the basic pay of Basic Pay Scales 2017 w.e.f. 1st March, 2021 to their civil employees.

This allowance shall be admissible to civil employees in BPS 1-19 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: 

a) 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):

 

b) This allowance will be frozen at the level drawn on 1st March 2021

 

c) This Allowance will be subject to Income Tax

 

d) This Allowance will be admissible during leave and entire period of L.P.R. except during extra ordinary leave;

 

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

 

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

 

g) 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

 

h) This Allowance will be admissible during the period of suspension

 

i) 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 Disparity Reduction Allowance 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 Organizations / Employees Drawing Extra Allowances and are not entitled to draw Disparity Reduction Allowance 

1. President PM Secretariat 
2. Federal Board of Revenue 
3. Health personnel Health establishments 
4. National Accountability Bureau (NAB) 
5. All Superior Courts 
6. Law & Justice Commission of Pakistan 
7. Islamabad Capital Territory Police 
8. National Highways & Motorways Police 
9. Islamabad Model Traffic Police 
10. Airport Security Force 
11. Civil Armed Forces 
12. Intelligence Bureau 
13. Inter Services Intelligence 
14. Federal Investigation Agency 
15. National Highways & Motorways Police 
16. National Assembly 
17. Senate Secretariat 
18. Parliamentary Affairs Division 
19. District Population Welfare Office 
20. Clinical Regional Training Institute 
21. Directorate General of Special Education 
22. National Institute of Rehabilitative Medicines 
23. National Institute of Special Education 
24. Rehabilitation Centre for Children with Development Disorders Islamabad 
25. National Council for Rehabilitation 
26. National Braille Press Islamabad 
27. Rehabilitation Unit Vocational Rehabilitation & Employment of Disabled persons Ibd. 
28. National Mobility & Independence Training Centre 
29. National Training Centre for Special Persons G-9/2 Islamabad 
30. Vocational Rehabilitation & Employment of Disabled persons SC-1 Ibd 
31. Provision of Hostel facilities at NSEC VHC Islamabad 
32. National Special Education Centre for PHC Islamabad 
33. National Special Education Centre
34. National Library & Resource Centre Islamabad 
35. National Trust for the Disabled 
36. Common Unit to Manage Global Fund 
37. Federal Services Tribunal 
38. Central Health Establishment and its Field Offices 
39. Fed Tax Ombudsman Appellate Tribunal Inland Revenue   
40. Appellate Tribunal
41. Customs Excise and Sales Tax 
42. Environmental Protection Tribunal 
43. Accountability Courts 
44. Special Judge (Customs Taxation & Anti Smuggling) 
45. Special Judge (Central) 
46. Banking Courts 
47. Special Courts (Control Of Narcotics Substance) 
48. Special Court (Offence in Banks) 
49. Special Court (Anti Terrorism) 
50. Competition Appellate Tribunal 
51. Intellectual Property Tribunal 
52. Drug Courts 
53. Anti Dumping Appellate Tribunal
54. Senior Civil Judge West Islamabad 
55. Senior Civil Judge East Islamabad 
56. District & Session Judge West Islamabad
57. District & Session Judge East Islamabad 
58. The civilian employees of PAF who are drawing additional allowance as allowed vide Finance Division's U.O. note bearing No.F.1(7)Imp/2009-705, dated 19-12-2012