Finance Division Clarification of 25% Disparity Reduction Allowance

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Finance Division Clarification of 25% Disparity Reduction DR Allowance has explained here. So, the Controller General Accounts, Islamabad will clarify problems earlier.

Subject: – DECISIONS TAKEN IN THE CABINET MEETING HELD ON 17-02-2021

However, it has directed to state that Finance Division proposed to the Cabinet to grant Disparity Reduction Allowance of 25% of the Basic Pay of BPS-2017.

Finance Division Clarification of 25% Disparity Reduction Allowance

In addition, it has granted to those Civil Employees in BS 1 to 19 of the Federal Government. Similarly, who has never allowed additional salary equal to or more than 100% of the Basic Pay (whether frozen or otherwise). So, this is a performance allowance.

In other words, the List of the organizations who are not eligible for Disparity Reduction Allowance is at Annex-I (copy attached). So, the Federal Cabinet in its decision dated 17-02-2021 has approved the above proposal. It has observed that the exclusion list at Annex-I is only indicative and not exhaustive.

The Federal Cabinet has directed Finance Secretary to ensure that Disparity Reduction Allowance shall not be admissible to those city employees who have been allowed any Additional Salary or Performance Allowance.

Related Links:

  • 25% Allowance on Running Basic Pay for Federal Employees
  • Terms and Conditions of 25% Disparity Reduction Allowance

Keeping in view the above Cabinet decision, the Controller General of Accounts has requested. He will provide the list of the organizations. Other than those at Annex-I, as well as those city employees who have been allowed additional allowance. So, the allowances equal to or more than 100% of the basic pay (whether frozen or otherwise) or Performance Allowance.

So that the notification for the grant of Disparity Reduction Allowance could be issued.

Finance Division Clarification of 25%
Finance Division Clarification of 25%

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