5 ad-hoc allowances made part of civil servants’ basic pay

The federal government has notified an increase of 15 per cent and 5 per cent in salaries and pensions, respectively, of all government civil servants employees with effect from July 1.

A notification issued by the finance ministry on Friday said that the raise took its effect from July 1. In addition to the increase in the minimum and maximum wages of the employees, the annual increment has also been increased.

A 15 per cent increase in the salaries of government employees will be applied to the basic salary of 2017. After that, the ad hoc allowances will be merged with that amount.

As a result, employees retiring from July 1 will benefit in the form of pensions.

“An ad hoc relief allowance-2022 @15% of the running basic pay of BPS-2017 shall be allowed to the civil employees of the federal government as well as civilians paid out of defence estimates including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment with effect from 01-07-2022 and shall stand frozen at the same level till further orders,” the notification read.

The ad hoc relief allowance will be subject to income tax.

Last month, the federal government, while unveiling the budget for 2022-23, had announced a 15 per cent increase in the salary of the government employees, as well as a 5 per cent increase in the pensions for the retired ones.

According to the notification of the increase, a copy of which is available with The Express Tribune, five ad hoc allowances and reliefs of 10 per cents since 2016 have also been merged with the basic pay scale and frozen at the level of its admissibility as on July 1, 2022.

As a result, the minimum salary of a grade-1 government employee will be Rs13, 550 and the maximum salary will be Rs26,450. The minimum salary of grade-17 employees has been increased to Rs45,070 while the maximum pay will be Rs113,470.

Likewise, the minimum salary of grade-21 employees will be Rs113,790 and the maximum salary will be Rs217,670. The minimum salary of a grade-22 employee will be Rs122,190 and the maximum salary will be Rs244,130.

The notification further said that previously on April 1, 2022 pensions had been increased by 10 per cent, and now a 5 per cent raise was announced, adding that retired officials of the armed forces as well as of the civil armed forces would also be entitled to the increase in pensions.

Furthermore, the decision also covered the officials retiring after July 1, 2022.

Similarly, a fifteen per cent ad hoc allowance will also apply to contract employees and contingent employees.

Meanwhile, special allowances, house rent allowance and other allowances equal to the basic salary of the employees of all ministries and divisions, including the judiciary, have been frozen at the level of 30 June 2022.