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Government of the Punjab, Finance Department, Additional Finance Secretary (Reg) issued letter regarding discontinuation of project allowance for projects / programmes / policy units / policy cells or any special dispensation as part of the market based salary / pay package for government servants on their appointment in public sector companies / boards / autonomous bodies / commissions / funds / authorities / special institutions / foundations / etc..

Detail of the Letter:-

1- The existing policy about grant of Market Based Salary / Project Allowance contained in this department's letters of even number dated 20.05.2014 and 21.11.2014 or any other letter whereby any special financial benefit as part of the regular Pay / Pay Package / Market Based Salary extended to the government employees working in the subject public sector organizations have been reviewed for the purposed of rationalization and uniform application across the board.

2-  In suppression of all previous policy instructions / circular letters on the subject it is hereby decided that:

a)  All types of Programme / Project Allowances / Pay Package / Market Based Salaries and any other special dispensation as a part of regular pay, presently admissible in subject entities / organizations mentioned shall be discontinued with effect from July 01, 2018 and all previous notification / orders / procedures / guidelines in this behalf including operation of Review and Rationalization Committee shall stand obviated. The officers / officials so posted / appointed shall only be entitled to draw pay and such allowances as are admissible to them in their own pay scales in their own Organizations / Departments / Secretariat plus deputation allowance, where applicable @20% of the basic pay scale subject to a maximum of Rs.12000/- per month or as revised from time to time.

b)  Additional Charge Allowance @20% of the basic pay scale subject to a maximum of Rs.12000/- per month or as revised from time to time shall be admissible to government servants assigned additional charge of post (s) in the subject entities / organizations.

3-  However, the officers / officials under reference would be considered for grant of reward / honoraria under Provincial Government's existing policy on the subject. Administrative Secretary of the entities under his / her administrative control will review performance of the said entities against their stated objectives and advise the government about the future pay structure of public servants working in such entities so that a unified and well thought framework can be developed in view of the business model of the entity.

4-  Terms and conditions already notified for officers / officials working in the aforementioned entities shall be deemed to have been modified accordingly with effect from July 01, 2018.

5-  This policy would not apply to contract employees from the private sector of such entities and organizations. 

6-  All concerned administrative Secretaries are requested to ensure implementation of the above mentioned instructions in letter and spirit. A certificate regarding implementation may be furnished to this department at the earliest.