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GRANT OF SPECIAL ALLOWANCE 2021 AND CONSTITUTION OF COMMITTEEE TO ADDRESS LOW PAY ISSUES

Agenda items No.18 before the Provincial Cabinet of the Punjab:- Grant of Special Allowance 2021 to the Employees of the Government of Punjab in BS 1-19 who are not receiving any cadre / service specific allowance.

18.1 Secretary Finance briefed the Cabinet that Federal Government issued notification for reduction of disparities in pay of its employees in different ministries, attached departments and other organizations under the title of Grant of Disparity Reduction Allowance. Moreover, the federal Government recommended to the Provincial Government to consider adopting the proposed disparity allowance for their employees to be funded from provinces own resources. 

18.2 After Issuance of the above mentioned notification, employees of various Provincial Departments started demanding the subject allowance on the analogy of said notification of the Federal Government. Accordingly, the Finance Department moved a note for Principal Secretary to Chief Minister who conveyed that Chief Minister had desired that the instant matter be placed before the Provincial Cabinet for its consideration / approval. Subsequently, in pursuance of the directions of the Competent Authority, 18C Wing, S&GAD, notified a Ministerial Committee to furnish its recommendations to the Provincial Cabinet to address the issue in a fiscally sustainable manner. 

18.3 The Ministerial Committee held various meetings under the Chairmanship of Finance Minister / Convener of the Committee and constituted a subcommittee to deliberate upon the various possibilities of increase in allowances with reference to reducing the disparity among various employees of the government in consultation with representatives of different unions of employees and to submit its report to the Ministerial Committee. 

18.4 The Ministerial Committee submitted various options in this regards to the Chief Minister, Punjab, on 20.05.2021, who finally approved to grant a Special Allowance, 2021, @ 25% of Initial Basic Pay Scale, 2017, w.e.f. June 1st, 2021, for the employees in BS-1 to BS-19 who were drawing no additional allowance except usual pay and allowances vis-à-vis House Rent Allowance, Conveyance Allowance, Medical Allowance and Adhoc Relief Allowance 2016, 2017, 2018 & 2019, with the financial implication of Rs.2.460 Billion per month.

18.5 Accordingly, the Cabinet was requested to consider and approve the proposal contained in para 18.4 above.

18.6 It was further suggested that low pays of employees of different departments may be addressed and it was recommended that a committee may be notified under Ministers for Law & PA, Minister for Prisons and Minister for Finance to discuss the issue of pay increases for employees of different departments. 

DECISION NO.18: 

I. The Cabinet considered and approved the proposal contained in para 18.4 above.

II. In order to address the issue of low pays of employees of different departments, a committee shall be notified to discuss the issue of pay raise of employees consisting of: 
a. Ministers for Law & PA 
b. Minister for Prisons 
c. Minister for Finance 

GRANT OF SPECIAL ALLOWANCE 2021GRANT OF SPECIAL ALLOWANCE 2021




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