Finance Division Announces Up to 26% Adhoc Relief Allowance for Govt Employees

The government has decided that the grant of Adhoc Relief Allowance-2023 will also apply to the employees of Autonomous/Semi-Autonomous Bodies and Corporations, which have adopted the federal government’s basic pay scales scheme in totality. Finance Division, however, has notified that this will, however, not apply to those Public Sector Corporations and Autonomous/Semi-Autonomous Bodies which have adopted different pay scales/allowances. The notification issued by the Finance Division stated that consequent upon the grant of Adhoc Relief Allowance-2024 @ 25 percent of basic pay to the civil servants in BPS 1-16 and @ 26 percent to BPS 17-22 w.e.f. 01-07-2024, it has, inter-alia, been decided that the grant of Adhoc Relief Allowance-2023 subject to existing conditions will also apply to the employees of Autonomous/Semi-Autonomous Bodies and Corporations, that have adopted the Federal Government’s Basic Pay Scales Scheme in totality. The above orders: will, however, not apply to those Public Sector Corporations and Autonomous /Semi-Autonomous Bodies that have adopted different pay scales/allowances. In the case of such organizations, the grant of Adhoc Relief Allowance- 2024 @ 25 percent and 20 percent of basic pay subject to existing conditions will be allowed with the concurrence of the Standing Committee of Finance Division on the recommendations of the respective Board of Directors/Governors. The grant of Adhoc Relief Allowance 2024 will invariably be tagged with the financial position of the organization. It is also clarified that Autonomous/Semi-Autonomous Bodies and- Corporations, etc. will forward the cases of executive / supervisory staff (only) with the_ recommendations of their respective Boards for concurrence of the Finance Division to the grant of Adhoc relief Allowance-2024 @ 25 percent and 20 percent of basic pay subject to existing conditions w.e.f. 10-07-2024 and subsequently, on the same analogy, this benefit will be allowed to the non-executive/non-supervisory staff of the Autonomous / Semi-Autonomous Bodies and Corporations with the approval of their Board of Director/Governors. Furthermore, it is pertinent to point out that paragraph (h) of sub-rule (1) of rule 12 of the Rules of Business, 1973, provides that no Division shall without previous consultation with the Finance Division, authorize the issue of any orders which will involve a change in the terms and conditions of service of Government servants, on their statutory rights and privileges, which have financial implications. In addition to the above, the Supreme Court of Pakistan in its judgment in Civil Appeals No.1428 to 1436 of 2016 concluded that “The Rules of Business, 1973 are binding on the Government and a failure to follow them would lead to an order lacking any legal validity”. In view of this position, it is binding upon all the administrative ministries/divisions of semi-autonomous, autonomous bodies/corporations to ensure that any changes in the pay, allowances, and privileges of executive/supervisory staff of the semi-autonomous, auditoriums bodies/corporation working under their administrative control are processed in accordance with the Finance Division Office Memorandum. In the last financial year, all ministries/divisions were requested to provide a list of autonomous /semi-autonomous bodies and corporations, etc under their administrative control, along with details of their pay structure and whether they have sought the concurrence of the Finance Division for grant of ad-hoc and other allowances and their pay scales on the given format but the requisite information is still awaited from a number of ministries/divisions. In case the approval is not been sought, the case should be initiated and forwarded for consideration of the Standing Committee of the Finance Division and final approval by the secretary Finance Division. The Finance Division has requested to comply with these instructions and submit a report. Finance Division issued another office Memorandum which stated that in pursuance of the decision taken dated 12.06.2024, the Federal Cabinet directed that: “Except in the case of the Armed Forces, Civil Armed Forces and other law enforcement and security related agencies, recruitment to vacancies in the existing posts of the Federal Government in BS-1 to BS-16 will be made inter alia with the prior approval of the Austerity Committee constituted from time ‘to time by the Finance Division, other than those in the case of which the recruitment process has already been initiated.” All Ministries/Divisions are requested to disseminate the above instructions to all departments under their administrative control for strict compliance.