Federal Government of Pakistan Finance Division (REGULATIONS WING) has prepared a summary for the Prime Minister of Pakistan for grant of disparity reduction allowance 2022. This is the latest update about the salary increase in 2022. Uniform Pay Scales introduced in 1972 for all Government servants in Pakistan. During PPP Government in Pakistan since 2009, disparities and differences in salaries occurred due to 100 percent to 300 percent of the basic pay as an allowance, in addition to the usual pay of the scale were awarded to employees of the various government departments. The departments/organizations which were granted 100 to 300 percent salaries increase are as under.
Disparity Reduction Allowance 2022
This Disparity Reduction Allowance-2022 shall be kept frozen, with effect from 1″ March, 2022 till further orders. Finance Division may also recommend to provincial governments to consider adopting the above package of disparity allowance to be funded from their own resources.In terms of Rule 15 of the Rules of Business, 1973, approval of the Prime Minister is solicited to the proposal contained in para 4 of the Summary. The Minister for Finance and Revenue has seen the summary.
Disparity Reduction Allowance is not Admissible to Employees
List of Organizations drawing Extra Allowances is not admissible to the following departments.
- President and Prime Minister of Pakistan Secretariat
- Federal Board of Revenue
- Health care departments
- National Accountability Bureau
- All Courts in Pakistan
- Law & Justice Commission of Pakistan
- Islamabad Police
- National Highways Police
- Islamabad Traffic Police
- AirPort Security ASF Pakistan
- Military Armed Forces
- Intelligence Bureau IB Islamabad
- ISI
- Federal Investigation Authority
- National Highways and Motorway Police
- National Assembly Of Pakistan
- Senate of Pakistan
- Parliamentary Affairs Division
Reason for Grant of Disparity Reduction Allowance
Here we will discuss the reason for the Grant of Disparity Reduction Allowance. The government of Pakistan did not increase in salaries of government servants in the budget for 2020-21. Meanwhile, tax revision and inflation, have had a severe impact on government servants. The Pay Increase matter was highlighted in the meeting of the different committees in which it was pointed that the salary structure of the Federal Government Employees has become a major impediment to attracting competent officers to work in the Federal Government. Protests by different unions and clerical staff against the disparity in salaries in Feb 2021.
Pay and Pension Commission
Pay and Pension Commission has been constituted to formulating recommendations for adoption w.e.f. 1st July 2021 For immediate It is, therefore, proposed that till such time that a new salary structure is adopted on the recommendations of the Pay and Pension Commission, a ‘Disparity Reduction Allowance of 25 percent of the basic pay of BS-2017 may be allowed w.e.f 1st March 2021 to those civil employees in BS-1 to BS-19 of the Federal Government who have never been allowed additional salary equal to or more than 100 percent of the basic.
Conditions for Grant of Disparity Reduction Allowance
This allowance will not be given to employees who already been awarded a 100 percent salary increase.
Finance Division also recommends to provincial governments consider the disparity allowance for their civil servants.
Disparity Reduction will be subject to Income Tax.
Allowance will be admissible during leave and entire period of L.P.R.
This Allowance will not be for the purpose of calculation of Pension/Gratuity.
This will not be admissible to the employees during the tenure of their posting/deputation abroad.
This Allowance will be admissible during the period of suspension;
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.
Running Pay
Notification of Disparity Reduction Allowance
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