Federal Government Notifications

GRANT OF DISPARITY REDUCTION ALLOWANCE @25% of Basic Pay

GRANT OF DISPARITY REDUCTION ALLOWANCE

The undersigned is directed to convey the approval of the Federal Government for grant of Disparity Reduction Allowance @ 25 % of the basic pay of Basic Pay Scales 2017 w.e.f. 15 March 2021. 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- and those employees who are drawing additional allowancelallowances 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 15 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 D 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 3 . 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 34 March 2021 . A










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