The government has sent out an Office Memorandum (OM) that says federal employees in grades 1 through 19 will get a 15% Disparity Reduction Allowance from March 1, 2022.
In an official letter from the Ministry of Finance on Wednesday, the government has agreed to pay the Disparity Reduction Allowance at 15% of the Basic Pay Scales 2017 from March 1, 2022.
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In order to get this allowance, federal civil employees in BPS 1-19 (including employees of the Federal Secretariat, attached departments, and subordinate offices) who have never been given an extra allowance or allowances that are equal to or greater than 100% of their basic pay (whether frozen or not) or a performance allowance can get it. The following are some of the conditions:
Not everyone who works for an organization will get this extra money. People who get the extra money that is more than 100% of their basic pay won’t be able to get it (whether frozen or otherwise).
- This allowance will stay at the level it was when it was drawn on March 1, 2022.
- This allowance will be taxed. This allowance will be available during leave and the entire length of the LPR, except for extraordinary leave. This allowance will not be counted as emoluments for the purposes of pension/gratuity and house rent.
- This allowance will not be available to employees while they are on assignment or deputation abroad. This allowance will be available to employees when they return home, at the rate and amount that would have been available to them had they not been on assignment or deputation abroad.
- During the suspension, this allowance can be used.
- It will also include the amount of Personal Pay that is given to people who get raises above the maximum of their pay scales each year.
- All the main accounting officers and the heads of the departments are asked to make sure this OM is followed in letter and spirit.