Notification of Special Allowance 2021 Punjab @ 25% of Basic Pay

Pleasant news for the employees of Government of the Punjab as Finance Department, Government of the Punjab has issued notification of Special Allowance 2021 @ 25% of Basic Pay. The case was placed before the Provincial Cabinet Committee by the Finance Department in order to seek concurrence of the Competent Authority regarding provision of Special Allowance 2021 to the employees working in the Punjab.

Federal Government issued notification for reduction of disparities in pay of its employees in different Ministries, attached Departments and other organizations and Government of Pakistan recommended to the Provincial Governments to consider disparity allowance for their employees. Subsequently, by the approval of Competent Authority, Secretary (I&C), constituted a committee to proceed further in the matter on the members mentioned below:-

Special Allowance 2021 Notification
i.Minister of FinanceConvener
ii.Minister of Law & PACo-Convener
iii.Minister for ICI&SDMember
iv.Minister for AgricultureMember
v.Additional Chief Secretary, S&GADMember
vi.Secretary FinanceMember
ViiCo-opted by the CommitteeMember

Punjab Special Allowance 2021:


After constitution of above mentioned committee, Secretary, Finance moved a summary for Chief Minister, Punjab with the request to grant Special Allowance 2021 @ 25% of the Basic Pay to the employees and Chief Minister had been pleased to place the instant matter before the Provincial Cabinet Committee for consideration.

After that, various meetings were held under the Chairmanship of Finance Minister / Convener of the above mentioned committee to consider the submit matter. Various options come into consideration; however, the Committee unanimously decided that a Special Allowance 2021 @ 25% of their basic pay may be added into the salaries of employees with effect from 1st June, 2021. After the approval of the Competent Authority, Secretary Finance, Government of the Punjab has issued notification regarding grant of Special Allowance 2021 to the Employees (BS 01 to BS 19) of the Government of the Punjab @ 25% of initial of Basic Pay 2017. The Contract employees are also eligible for this allowance. The terms and conditions of Special Allowance 2021 have been mentioned as under:-

  • Be subject to Income Tax.
  • Be admissible during leave and entire period of LPR except during extra ordinary leave.
  • not be treated as part of emoluments for the purpose of calculation of pension / gratuity and recovery of House Rent
  • Not be admissible to the employees during the tenure of their posting / deputation in Federal / Other Provincial Government including AJK & GB as well as deputation abroad.
  • Be admissible to the employees on their repatriation from posting / deputation at the rate and amount which would have been admissible to them they had not proceeded on deputation.

It is further stated that the employees that are already getting paid cadre / service specific allowances are not eligible for the Special Allowance. The allowance is only admissible to the employees who are drawing their pay in the relevant basic pay scale along-with only following allowances:-

  • House Rent Allowance
  • Conveyance Allowance
  • Medical Allowance
  • Adhoc Relief  Allowance (2016, 2017, 2018, 2019)

Moreover, Special Allowance will be paid in the Financial Year 2021-22 and it has been seriously directed by the Competent Authority to Accounts office that Special Allowance may be added into the salaries only to eligible candidates.


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