Grant of Disparity Reducation Allowance by Govt.of Punjab

Today i.e. 24-03-2021,summary has been sent Finance Department to Chief Minister office Punjab Lahore.

The detail and true copt of said notification is as under;


Summary of 25% Disparity Reduction Allowance For Punjab Govt Employees


Federal Government issued notification for reduction of disparities in pay of its employees in different Ministries, Attached Departments and other organizations, as well as with Provincial Governments employees, under the title of Disparity Reduction Allowance @ 25% of the basic pay of Basic Pay Scales, 2017 (Annex-A) Salient features of the Notification are as under;

  1. The said allowance is admissible to only those employees who have not been allowed additional allowance(s) equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance.
  2. The allowance is effective from 01.03.2021.
  3. A negative list of the organizations / departments, whose employees will not be entitled to Disparity Reduction Allowance, has been given.

After issuance of the above mentioned notification, employees of the different provincial departments started demanding the subject allowance, whereas, it was only for Federal Government employees. Lately, different segments of provincial employees are resorting to protest to press for fulfillment of their demand.

The Punjab Government in the recent past had granted various financial benefits and incentives to its different departments which had created a disparity between pay/allowances of the provincial and federal employees. The present demand of the provincial employees involves a huge financial implications and it would have adverse effect on the provincial finances as the current financial year is nearing to its close. In view of above, the matter is being submitted for perusal of the Chief Minister please.

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