The federal government on Wednesday approved a 15 per cent disparity reduction allowance to civil employees in BPS 1-19 of the federal government.
This allowance shall be admissible to civil employees in BPS 1-19 of the federal government (including employees of the federal secretariat, attached departments and subordinate offices) who have never been allowed additional allowance equal to or more than 100 per cent of the basic pay (whether frozen or not).
As per the details, this allowance will not be admissible to the employees of the organization who are drawing additional allowances equal to or more than 100 per cent of the basic pay.
Similarly, this allowance will be frozen at the level drawn on March 1, 2022 while the income tax conditions will also be applied.
Moreover, this allowance will be admissible during leave and the entire period of LPR except during extra ordinary leave.
Document states that the government has declared that this allowance will not be treated as part of emoluments for the purpose of calculation of pension or gratuity and recovery of house rent.
In addition, the allowance will not be admissible to the employees during the tenure of their posting abroad whereas this allowance will be admissible to the employees on their repatriation from posting abroad at the rate and amount which would have been admissible to them, had they not been posted abroad.
Documents also state that this allowance will be admissible during the period of suspension and 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.
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