ISLAMABAD: The finance ministry has notified an office memorandum for the increase of 15 per cent in the salary of federal government employees from March 01, 2022.
According the memorandum dated February 23, 2022, the employees of the federal government will get disparity reduction allowance at 15 per cent of the basic pay scales 2017 with effect from March 01, 2022.
The federal government on February 10, 2022 announced an increase of 15 per cent in salaries of employees from BS-1 to BS-19.
The latest memorandum stated that the allowance shall be admissible to civil employees in BPS-1 to BPS-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 per cent of the basic pay (whether frozen or not) or performance allowance subject to the following conditions:
a. This allowance will not be admissible to the employees of the organizations who are drawing additional allowance/allowances equal to or more than 100 per cent of the basic pay (whether frozen or otherwise);
b. This allowance will be frozen at the level drawn on March 01, 2022;
c. This allowance will be subject to Income Tax;
d. This allowance will be admissible during leave and entire period of LPR except during extra ordinary leave;
e. This allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent;
f. This allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;
g. This allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad;
h. This allowance will be admissible during the period of suspension;
i. The term ‘basic pay’ will also include the amount of personal pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.