Notification Of 25% Pay Increase

 GRANT OF DISPARITY REDUCTION ALLOWANCE The undersigned is directed to convey the approval of the Federal Government for grant of Disparity Reduction Allowance @ 25% of the basic pay of Basic Pay Scales 2017 w.e.f. 1" March 2021. This allowance shall be admissible to civil employees in BPS 1-19 of the Federal Government, (including employees of the Federal Secretariat and attached departments), who have never been allowed additional allowancelallowances equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance subject to the following conditions: a) This Allowance will not be admissible to the employees of the organizations as mentioned in Annexure-l and those employees who are drawing additional allowance/allowances equal to or more than 100% of the basic pay(whether frozen or otherwise); b) This allowance will be frozen at the level drawn on 1" March 2021 c) This Allowance will be subject to Income Tax: d) This Allowance will be admissible during leave and entire period of L.P.R. except during extra ordinary leave; e) This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent; f) This Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad; 9) This Allowance will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them, had they not been posted abroad, h) This Allowance will be admissible during the period of suspension; ) 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. 2. All the Principal Accounting Officers and Heads of the departments are requested to ensure the compliance of this O.M in letter and spirit. 3. Any issues arising out of the implementation of Disparity Reduction Allowance will be resolved by a committee notified vide Finance Division O.M.No.F.14(1)R-3/2021- 91 dated 3 March 2021.