Govt Grants 10% Ad Hoc Relief Allowance On Basic Pay For Govt Employees

Business

The federal government has granted a 10 percent ad-hoc relief allowance on basic pay to civil employees.

The Ministry of Finance issued an office memorandum pertaining to granting of 10% ad-hoc relief allowance on basic pay to civil employees of the federal government.


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“The President has been pleased to sanction with effect from July 1, 2021, and till further orders, an ad-hoc relief allowance of 10% of basic pay to all the federal government employees such as Armed Forces Personnel, Civil Armed Forces and Civil Employees of the Federal Government as well as the civilians paid from Defence Estimates including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment”, the letter stated.

The amount of Ad-hoc Relief Allowance-2021 will not only be subject to Income Tax, but also be admissible during leave and the entire period of LPR, except during extraordinary leave.

It will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent.

Similarly, it will not also be admissible to the employees during the tenure of their posting/deputation abroad, and 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.


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The term “Basic Pay” for the purpose of Ad-hoc Relief Allowance will also include the amount of the personal pay granted on account of the annual increment(s) beyond the maximum of the existing pay scales.

The above Ad-hoc relief allowance shall be accommodated from within the budgetary allocation for the year 2021-22 by the respective Ministries/Divisions/Departments, and no supplementary grants would be given on this account.

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