Govt revises special allowance for civil employees earning below Rs37,000

ISLAMABAD: The government has announced a revision in the special allowance for civil employees earning a gross salary of less than Rs37,000 per month.

According to a notification issued by the Finance Division, the president has approved an increase in the minimum gross salary from Rs32,000 to Rs37,000, effective from July 1, 2024.

This adjustment applies to all federal civil employees, including those paid from defence estimates, as well as contingent staff and contract employees working in civil posts under standard contract terms.

The increase in the minimum wage and the associated special allowance will be managed within the existing budgetary allocations for the fiscal year 2024-2025 by the respective ministries, divisions, and departments. No additional funds will be provided for this purpose.

For employees whose gross salary remains below Rs37,000 after this adjustment, a special allowance will be provided to cover the difference.

The notification outlined the following conditions for the special allowance:

1. The allowance will be subject to income tax.
2. It will be payable during leave and the entire period of leave preparatory to retirement (LPR), except during extraordinary leave.
3. The allowance will not be considered part of the employee’s emoluments for calculating pension, gratuity, or house rent recovery.
4. It will not be payable to employees during their posting or deputation abroad.
5. Upon repatriation from a foreign posting or deputation, the allowance will be provided at the rate applicable had the employee not been posted abroad.

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