As per the summary sent for approval by Finance Division, Disparity Reduction Allowance on Running Basic Pay, the FD will grant. The List of Departments has also the Finance Division shown for those departments who have already got 100% or more salary. So the remaining department will get this DRA 2021. The Finance Division will freeze this allowance as of 1^st March 2021. Government will merge various ad-hoc relief allowances on 1^st July. Finance Division will introduce Revised Pay Scales 2021 in July 2021. The Para G of terms and conditions clears that this allowance is on the current running basic pay of the Revised Pay Scales 20217.

Disparity Reduction Allowance On Running Basic Pay

1. A structure of Unified Pay scales was introduced in 1972 for all government servants. However, since 2009, disparities in salaries have occurred because employees of various government establishments were allowed 100 percent to 300 percent of the basic pay as an allowance, in addition to the usual pay of the scale (list at Annexure-I).
2. The Government did not allow any increase in salaries of government servants in the budget for FY 2020-21. At the same time, the tax slabs for the salaried class were revised. The tax revision, coupled with inflation, has had an adverse impact on government servants, whose take-home salaries were actually reduced even in nominal terms.
3. The matter was reviewed in the meeting of the Secretaries’ Committee wherein it was concluded that the salary structure of the Federal Secretariat has become a major impediment to attracting competent officers to work in Federal Ministries. Offices now prefer working for provincial governments, where Salaries have been raised significantly. The Secretaries’ Committee was of the opinion that the present pay structure is not tenable and salaries of the Federal Secretariat require an upward revision in order to motivate and retain offices in the Federal Secretariat. Furthermore, there have been protracted and widespread protests by clerical staff against the disparity in salaries.  The Government will grant Disparity Reduction Allowance @ 25% of pay to employees. The approval they will get on Tuesday 16th Feb 2021.

List of Organizations Drawing extra Allowances

1. President / PM Secretariat
2. Federal Board of Revenue
3. Health Personnel
4. National Accountability Bureau (NAB)
5. All Superior Courts \
6. Law & Justice Commission of Pakistan
7. ICT Police
8. National Highway & Motorways Police
9. Islamabad Model Traffic Police
10. ASF
11. Civil Armed Forces
12. IB
13. ISI
14. FIA
15. National Highway and Motorway Police
16. National Assembly
17. Senate
18. Parliamentary Affairs Division

Standard Conditions

1. This Allowance will be subject to income tax;
2. This allowance will be admissible during leave and the entire period of L.P.R. except during extra ordinary leave;
3. This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent;
4. This Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;
5. The same 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;
6. This allowance will be admissible during the period of suspension; \
7. 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.

Special Thanks:

• Mr. Ghulam Yasin
• Mr. AB Taha
• Ch Yasin
• Mr. Azher Munir