Govt announces Revised Special Allowance for federal civil employees, Details inside

ISLAMABAD: The government of Pakistan, Finance Division issued a notification on 27-08-2024 in connection with Revision Special Allowance 2024 Federal Govt Employees earning a monthly gross salary below Rs37,000.

Moreover, now the government has announced a minimum salary of Rs. 37,000/- per month for federal govt employees who were getting a minimum salary of Rs. 32,000/- previously

Effective July 1, 2024, President Zardari has approved a raise in the minimum gross salary amount from Rs 32,000 to Rs 37,000. This change benefits all federal civil employees, including those paid from defense estimates, contingent staff, and contract employees in civil posts.

In addition, to implement this increase, ministries, divisions, and departments will utilize their existing budget allocations for the 2024-2025 fiscal year, without requiring additional funding.

Moreover, employees with a gross salary below Rs37,000 after the adjustment will receive a special allowance to bridge the gap.

Conditions for Special Allowance

•  It will be subject to income tax.
• The allowance will be paid during leave and leave preparatory to retirement, except for extraordinary leave.
• It will not be considered part of the employee’s emoluments for pension, gratuity, or house rent calculations.
• The allowance will not be paid during foreign postings or deputations.
•  Upon returning from abroad, the allowance will be provided at the rate applicable before the foreign posting.

How to Calculate Special Allowance Amount

If a BPS-01 Employee is getting the gross salary as per the following rates:

Special Allowance 2024 = 37,000 – 31995 = 5005/- per month

The government of Pakistan and the federal authorities took this action to provide some relief to the government servants amid the recent hike in prices.