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 The Federal Government approved / granted Disparity Reduction Allowance @ 25% of the basic pay of Basic Pay Scales 2017 w.e.f. 1st March, 2021 to their civil employees.

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 allowance/allowances 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 1st 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:


g) 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


i) 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.


 All the Principal Accounting Officers and Heads of the departments are requested to ensure the compliance of this O.M in letter and spirit. 

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 3rd March 2021.

List of Organizations / Employees Drawing Extra Allowances and are not entitled to draw Disparity Reduction Allowance 

  1. President PM Secretariat 
  2. Federal Board of Revenue 
  3. Health personnel Health establishments 
  4. National Accountability Bureau (NAB) 
  5. All Superior Courts 
  6. Law & Justice Commission of Pakistan 
  7. Islamabad Capital Territory Police 
  8. National Highways & Motorways Police 
  9. Islamabad Model Traffic Police 
  10. Airport Security Force 
  11. Civil Armed Forces 
  12. Intelligence Bureau 
  13. Inter Services Intelligence 
  14. Federal Investigation Agency 
  15. National Highways & Motorways Police 
  16. National Assembly 
  17. Senate Secretariat 
  18. Parliamentary Affairs Division 
  19. District Population Welfare Office 
  20. Clinical Regional Training Institute 
  21. Directorate General of Special Education 
  22. National Institute of Rehabilitative Medicines 
  23. National Institute of Special Education 
  24. Rehabilitation Centre for Children with Development Disorders Islamabad 
  25. National Council for Rehabilitation 
  26. National Braille Press Islamabad 
  27. Rehabilitation Unit Vocational Rehabilitation & Employment of Disabled persons Ibd. 
  28. National Mobility & Independence Training Centre 
  29. National Training Centre for Special Persons G-9/2 Islamabad 
  30. Vocational Rehabilitation & Employment of Disabled persons SC-1 Ibd 
  31. Provision of Hostel facilities at NSEC VHC Islamabad 
  32. National Special Education Centre for PHC Islamabad 
  33. National Special Education Centre
  34. National Library & Resource Centre Islamabad 
  35. National Trust for the Disabled 
  36. Common Unit to Manage Global Fund 
  37. Federal Services Tribunal 
  38. Central Health Establishment and its Field Offices 
  39. Fed Tax Ombudsman Appellate Tribunal Inland Revenue   
  40. Appellate Tribunal
  41. Customs Excise and Sales Tax 
  42. Environmental Protection Tribunal 
  43. Accountability Courts 
  44. Special Judge (Customs Taxation & Anti Smuggling) 
  45. Special Judge (Central) 
  46. Banking Courts 
  47. Special Courts (Control Of Narcotics Substance) 
  48. Special Court (Offence in Banks) 
  49. Special Court (Anti Terrorism) 
  50. Competition Appellate Tribunal 
  51. Intellectual Property Tribunal 
  52. Drug Courts 
  53. Anti Dumping Appellate Tribunal
  54. Senior Civil Judge West Islamabad 
  55. Senior Civil Judge East Islamabad 
  56. District & Session Judge West Islamabad
  57. District & Session Judge East Islamabad 
  58. The civilian employees of PAF who are drawing additional allowance as allowed vide Finance Division's U.O. note bearing No.F.1(7)Imp/2009-705, dated 19-12-2012


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