Finance Ministry notifies raise in govt employees’ salary

KARACHI: The Ministry of Finance on Thursday notified the grant of an ad hoc relief of 10 per cent of basic pay of government employees that was announced in the Federal Budget 2021/22.

A notification issued by the ministry said the president had sanctioned the allowance with effect from July 1, 2021 and till further orders at 10 per cent of basic pay to all the federal government employees, including armed forces personnel, civil armed forces and civil employees of the federal government, as well as the civilians paid from the defence estimates, including contingent paid staff and contract employees employed against civil posts in basic pay scales on standard terms and conditions of the contract appointment.

The amount of ad hoc relief allowance – 2021 will be subject to income tax, the ministry said, adding that it will be admissible during leave and an entire period of Leave Preparatory to Retirement (LPR) except during extraordinary leave.

The ad hoc salary will not be treated as part of the emoluments for the purpose of calculation of pension, gratuity and recovery of the house rent, it said, adding that the ad hoc salary will also not be admissible to the employees during the tenure of their posting/deputation abroad.

The Finance Ministry said the term basic pay for the purpose of ad hoc relief allowance will also include the amount of personal pay granted on account of annual increment beyond the maximum of the existing pay scales.