The government of the Pakistan Finance Division (Regulations Wing) issued notification regarding the 25 disparity reduction allowance. Grant of disparity reduction allowance notification issued on 3rd March 2021 vide order.F.No. 14(1)R-3/2021-90. In this regard office memorandum issued. Secretary Finance Government of Pakistan directed to convey the approval of the federal government for grant of Disparity Reduction Allowance @ 25% of the basic pay ofBasic Pay Scales 2017 w.e.f. 14 March 2021. Disparity reduction allowance 2021 allowance shall admissible to civil employees in BPS 1-19 of the Federal Government. It will include employees of the Federal Secretariat and attached departments), who have never allowed additional allowance/allowances equal to or more than 100% of the basic pay.
Notification Of Disparity Reduction Allowance
Grant of disparity reduction allowance is admissible on the following conditions. 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.
This allowance will be frozen at the level drawn on 1st March 2021. Grant of Allowance will be subject to Income Tax. This Allowance will be admissible during leave and the entire period of L.P.R. It will be admissible to the employees on their repatriation from posting/deputation abroad. This Allowance will be admissible during the period of suspension.
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Disparity Allowance on Running Basic Pay
The term “Basic Pay will also include the amount of Personal Pay granted on account of the annual increment (s) beyond the maximum of the existing pay scales. This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity.
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.
