Notification of Disparity Reduction Allowance 2021 (DRA) @ 25% of Pay

Finance Division, Government of Pakistan has issued a Notification on 03-03-2021 in connection with Notification of Disparity Reduction Allowance 2021 (DRA) @ 25% of Pay. This Notification is with effect from 1st March 2021 for Federal Government employees. The details of the same ARA-2021 are as under:

Finance Division, Government of Pakistan has issued the final confirmed notification on 3rd March, 2021 regarding announcement of 25% increase in salary of federal employees 2021. The details of the complete notification is given below and clarification of 25% disparity reduction allowance on running basic pay according to the scale revised in 2017.



Grant of 25% Disparity Reduction Allowance To Federal Employees 2021


Deputy Secretary 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. 1st March, 2021. This allowance shall be admiss by ible to civil employees in BPS-1 to BPS-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:


Clarification of 25% Increase in Salary (DRA) Admissibility Conditions:


  1. This Allowance will not be admissible to the employees of the organizations as mentioned in Annexure-l and those employees who are drawing additional allowance/allowances equal to or more than 100% of the basic
    pay(whether frozen or otherwise);
  2. The allowance will be frozen at the level drawn on 1st March 2021.
  3. The Allowance will be subject to Income Tax;
  4. This Allowance will be admissible during leave and entire period of L.P.R. except during extra ordinary leave;
  5. This Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent;
  6. This Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;
  7. 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;
  8. This Allowance will be admissible during the period of suspension;
  9. 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.

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 3rd March 2021.

List of Ministries/Divisions/Departments Eligible For 25% Allowance 2021


  1. President’s Secretariat (Public), Islamabad.
  2. President’s Secretariat (Personal), Islamabad.
  3. Prime Minister’s Office (Public), Islamabad.
  4. Prime Minister’s Office (Internal), Islamabad.
  5. National Assembly Secretariat, Islamabad.
  6. Senate Secretariat, Islamabad.
  7. Election Commission of Pakistan, Islamabad.
  8. Supreme Court of Pakistan, Islamabad.
  9. Federal Shariat Court, Islamabad.
  10. Auditor General of Pakistan, Islamabad.
  11. Controller General of Accounts, Islamabad.
  12. AGPR, Islamabad/Lahore/Peshawar/Karachi/Quetta.
  13. Military Accountant General, Rawalpindi.
  14. All JS(expenditure / DS Expenditure) attached to Ministries/ Divisions etc and all officers of Finance Division.
  15. Chief Accounts Officer, M/o Foreign Affairs, Islamabad.
  16. All Chief Secretaries/Finance Secretaries of the Government of Punjab/Sindh/Khyber Pakhtunkhwa/Balochistan/Azad State of Jammu & Kashmir and Gilgit Baltistan with the recommendation to consider adopting the proposed disparity allowance for their employees to be funded from provinces own resources.
  17. Federal Public Service Commission, F-5/1, Agha Khan Road, Islamabad.
  18. Secretary, Wafaqi Mohtasib Islamabad (Ombudsman)’s Secretariat
  19. Central Directorate of National Savings, Islamabad.
  20. National Accountability Bureau, Islamabad.
  21. Intelligence Bureau, Islamabad.
  22. Pakistan Mint, Lahore.
  23. Dte. Gen, Pakistan Post, Islamabad.
  24. Secretariat Training Institute, Islamabad.
  25. Directorate General of Inspection & Training, Customs & Central Excise, 8th Floor, New Customs House, Karachi.
  26. Federal Tax Ombudsman’s Secretariat, Islamabad.

List of Organizations Employees Drawing Extra Allowance 2021


  1. President / PM Secretariat
  2. Federal Board of Revenue (FBR)
  3. Health personnel / Health establishments
  4. National Accountability Bureau (NAB)
  5. All Superior Courts
  6. Law & Justice Commission of Pakistan
  7. Islamabad Capital Territory Police
  8. National Highways & Motorways Police
  9. Islamabad Model Traffic Police
  10. Airport Security Force (ASF)
  11. Civil Armed Forces
  12. Intelligence Bureau
  13. Inter Services Intelligence
  14. Federal Investigation Agency
  15. National Highways & Motorways Police
  16. National Assembly
  17. Senate Secretariat
  18. Parliamentary Affairs Division
  19. District Population Welfare Office
  20. Clinical Regional Training Institute
  21. Directorate General of Special Education
  22. National Institute of Rehabilitative Medicines
  23. National Institute of Special Education
  24. Rehabilitation Centre for Children with Development Disorders Islamabad
  25. National Council for Rehabilitation
  26. National Braille Press Islamabad
  27. Rehabilitation Unit Vocational Rehabilitation & Employment of Disabled persons Ibd.
  28. National Mobility & Independence Training Centre
  29. National Training Centre for Special Persons G-9/2 Islamabad
  30. Vocational Rehabilitation & Employment of Disabled persons SC-1 lbd
  31. Provision of Hostel facilities at NSEC VHC Islamabad
  32. National Special Education Centre for PHC Islamabad

Implementation of 25% Disparity Reduction Allowance 2021


Deputy Secretary Finance Department, Govt of Pakistan has also issued office memorandum for the constituting committee to resolve issues arising during implementation of 25% disparity reduction allowance (DRA).

The undersigned is directed to say that the following committee is hereby constituted to resolve the issues arising during implementation of Disparity Reduction Allowance granted vide Finance Division O.M.No.F.14(1)R-3/2021-90 dated 3rd March 2021:

  1. Additional Finance Secretary (Regulations). Finance Division. Chairman
  2. Joint Secretary (Regulations), Finance Division. Member
  3. Deputy Military Accountant General. Member
  4. Additional Accountant General Pakistan Revenues Member
  5. An Officer of the status of Joint Secretary from Concerned Ministry/Division Member
  6. Deputy Secretary (R-I), Finance Division Secretary/Member 2.

All Ministries/Divisions/Departments may identify the bona-fide cases in the light of eligibility as contained in Finance Division’s above referred O.M and refer them, with specific recommendations of the PAO of the line Ministry/Division, to the Member/Secretary, Committee, Finance Division, Islamabad upto 30-06-2021. The committee will examine and submit its recommendations for the approval of the Secretary Finance.

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