Ad-hoc Relief Allowances 2023 and 2024 will remain frozen, while new federal employees will receive them on a notional basis.
ISLAMABAD: The Ministry of Finance has issued a clarification on the implementation of the Revised Basic Pay Scales (BPS) 2026 and the treatment of Ad-hoc Relief Allowances (ARAs) 2023 and 2024 for federal government civil servants.
The clarification addresses queries raised by ministries and departments following the issuance of the Finance Division’s Office Memorandum (O.M.) No. F.1(2)Imp/2026 dated July 21, 2026, with the aim of ensuring uniform implementation of the revised pay package across the federal government.
Special Pays and Allowances to Remain Frozen
The Finance Ministry reiterated that, under Paragraph 7 of the Office Memorandum, all Special Pays, Special Allowances and allowances calculated as a percentage of pay will remain frozen at the levels applicable on June 30, 2026.
To remove ambiguity surrounding the treatment of Ad-hoc Relief Allowances, the ministry has issued separate clarifications for the 2023 and 2024 allowances.
Ad-hoc Relief Allowance 2023
According to the clarification:
• Ad-hoc Relief Allowance 2023 will remain frozen at the level admissible on June 30, 2023.
• Employees joining the federal government on or after July 1, 2026 will receive the allowance on a notional basis until further orders.
• The allowance for new entrants will be calculated as:
o 35% of the minimum of the relevant Basic Pay Scales-2022 for employees in BPS-1 to BPS-16.
o 30% of the minimum of the relevant Basic Pay Scales-2022 for employees in BPS-17 to BPS-22.
• These notional amounts will also remain frozen until further instructions are issued.
Ad-hoc Relief Allowance 2024
The Finance Ministry further clarified that Ad-hoc Relief Allowance 2024 will continue to remain frozen at the level admissible on June 30, 2026.
The applicable rates are:
• 25% of Basic Pay Scales-2022 for employees in BPS-1 to BPS-16.
• 20% of Basic Pay Scales-2022 for employees in BPS-17 to BPS-22.
For employees appointed on or after July 1, 2026, the allowance will be granted on a notional basis as follows:
• 25% of the minimum of the relevant Basic Pay Scales-2022 for employees in BPS-1 to BPS-16.
• 20% of the minimum of the relevant Basic Pay Scales-2022 for employees in BPS-17 to BPS-22.
The ministry stated that these notional amounts will also remain frozen until further orders.
Clarification Aims to Ensure Uniform Implementation
According to the Finance Ministry, the latest clarification has been issued to eliminate uncertainty regarding the admissibility of frozen allowances, particularly for employees recruited after the introduction of the Revised Basic Pay Scales 2026.
The instructions confirm that while the new pay scales have come into effect, Ad-hoc Relief Allowances 2023 and 2024 will continue to be paid at their frozen levels. Employees joining federal service from July 1, 2026 onwards will receive these allowances on a notional basis, calculated using the minimum of the corresponding Basic Pay Scales-2022, until the government issues further directions.