Government employees holding degrees declared equivalent to MPhil by the HEC can now claim the Rs2,500 monthly allowance, subject to an equivalence certificate and prescribed conditions.
ISLAMABAD: The Finance Division has extended the benefit of the MPhil Allowance of Rs2,500 per month to government employees holding degrees recognised as equivalent to MPhil by the Higher Education Commission (HEC), subject to fulfilment of prescribed conditions.
According to an Office Memorandum issued on September 14, 2026, employees who acquire or possess an HEC-recognised equivalent degree will be eligible for the allowance after submitting an equivalence certificate.
The facility will take effect from July 17, 2026.
MPhil allowance linked to PhD allowance
The Finance Division said the MPhil Allowance was originally made admissible under its Office Memorandum No. F.3(6)Imp/2016-336, dated July 1, 2016.
Under the policy, the MPhil Allowance is calculated at 25% of the existing PhD Allowance. The current MPhil Allowance therefore stands at Rs2,500 per month, subject to the conditions laid down in the relevant Finance Division orders.
The latest decision follows a review by the Finance Division of the eligibility of employees holding qualifications that have been declared equivalent to MPhil degrees by the HEC.
Equivalence certificate mandatory
The September 14 memorandum states that employees possessing an HEC-recognised equivalent qualification may receive the MPhil Allowance with effect from July 17, 2026, provided they submit the required equivalence certificate.
The clarification expands the scope of the allowance to qualifications that have been formally declared equivalent to MPhil by the HEC.
Employees seeking the allowance will therefore need to establish the equivalence of their qualification through the prescribed HEC documentation.
Earlier policy excluded equivalent degrees
The Finance Division had taken a narrower position in an earlier memorandum dated November 24, 2025, stating that its policy specifically covered the MPhil degree recognised by the HEC.
At the time, the division stated that employees holding an HEC-recognised MPhil degree were entitled to the allowance at 25% of the existing PhD Allowance, with effect from July 1, 2016, in accordance with a Cabinet decision and subject to prescribed conditions.
The Finance Division had also clarified that no other degree, whether considered equivalent by the HEC or otherwise, had been placed at par with MPhil for the purpose of granting the allowance.
Previous Finance Division clarification
The division had previously pointed out that HEC equivalence declarations were generally issued for purposes including job recruitment and admission to universities for further education.
The matter was also addressed through Finance Division’s Office Memorandum No. F.3(6)Imp/2016-Vol-II-4, dated January 4, 2017.
The latest memorandum changes the position by allowing employees with HEC-equivalent qualifications to receive the MPhil Allowance, provided they submit the required equivalence certificate and meet all applicable conditions.