An agenda Item No.05 has been approved by the Cabinet Meeting on 22 June 2022 in connection with the approval of the Grant of 15% Special Allowance 2022 to the employees of Punjab Govt. w.e.f 01-03-2022. Further detail of said approved agenda is as under:

Approval of Grant of 15% Special Allowance w.e.f March 2022

  • Special Allowance 2022 for the employees of BPS-01 to BPS-19 who were not drawing any special allowance equal to or more to 100%
  • This Special Allowance is on the running or current basic pay of the revised pay scales 2017
  • The rate of the allowance is 15% of current basic pay
  • The effective date of this special allowance is 1st March 2022
  • Punjab employees will get the arrears for the period of 1st March 2022 to 30th June 2022 (4 months).

Detail

Secretary Finance Department briefed the Cabinet that Federal Government issued notification regarding grant of Disparity Reduction Allowance @ 15% of the basic pay scale 2017 w.e.f. 01.03.2022 to its employees in BS-1 to BS-19 who had never been allowed additional allowance/allowances equal to or more than 100% of the basic pay (whether frozen or not) or performance allowance.

The cabinet was further apprised that the Chief Minister was pleased to direct that the matter regarding grant of Special Allowance 2022, with effect from 1st March 2022, at the rate of 15 percent of basic pay scales (BPS)-2017 to that BS-01 to BS-19 employees of the Government of Punjab who was not drawing any cadre/service-specific allowance(s) may be placed before the Standing Committee of the Cabinet on Finance & Development (SCCFD) for consideration. Cabinet Wing of S&GAD had returned the subject agenda with the direction to seek fresh approval of the Chief Minister.

Accordingly, a fresh summary was initiated to Chief Minister regarding the approval of a grant of 15% Special Allowance on the basic pay scale 2017 to the employees in BS-01 to BS-19 who were not receiving any service/cadre specific allowance. Chief Minister had been pleased to allow to place the matter before the Cabinet for its consideration and approval.

It was further added that in case the demand of provincial employees was accepted i.e., grant of Disparity Reduction Allowance @15% of running Basic Pay Scale of 2017, the financial implication in this regard would be Rs.45 billion per annum and Rs.15 billion arrears w.e.f. 01.03.2021 to 30.06.2022. The eligibility criteria for grant of subject allowance would be the same as reflected in the previous notification dated 07.07.2021, as well as the name of said allowance, which would be Special Allowance 2022 @ 15% of running basic pay scale 2017.

Para 5.5

Accordingly, the Cabinet was requested to consider and approve the Special Allowance 2022 @ 15% of running basic pay scale 2017 to the employees in BS-01 to BS-19 who were not receiving any service/cadre specific allowance w.ef. 01/03/2022. The government of Puanb is also going to revise the scales of Punjab Employees.

Punjab Employees and Pensioners

There was a seem that they will get the same on initial basic pay as they got the Special Allowance 2021 on Initial basic Pay.  They not only will get this special allowance on current basic pay, but they will also get the arrears for four months. In the budget, they will also get the increase in salaries @ 15% as Adhoc Allowance.

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