ISLAMABAD - The Ministry of Finance on Wednesday notified the Disparity Reduction Allowance at 15 percent of the Basic Pay Scales 2017 with effect from next month (March 2022) to the civil employees in BPS 1-19 of the federal government.

The federal government on February 9 had decided to give 15 percent disparity allowance on running basic pay to the underprivileged employees from BS-1 to BS-19 from March 1. The package has also been recommended to the provinces for adoption from their own funds, said a finance ministry handout.

According to the notification issued here, the Disparity Reduction Allowance shall be admissible to civil employees in BPS 1-19 of the federal government (including employees of the Federal Secretariat, attached departments and subordinate offices) who have never been allowed additional allowance/allowances equal to or more than 100 percent of the basic pay (whether frozen or not) or performance allowance. However, the allowance has been linked with some conditions including this allowance will not be admissible to the employees of the organisations who are drawing additional allowance/allowances equal to or more than 100% of the basic pay(whether frozen or otherwise).

Similarly, the allowance will be frozen at the level drawn on 1st March 2022. This allowance will be subject to lncome Tax. It would be admissible during leave and entire period of LPR except during extra ordinary leave.

This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent. This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad.