Grant Of Special Allowance @25% to Punjab Govt. Employees

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SUMMARY FOR PROVINCIAL CABINET

Minister incharge: Makhdum Hashim Jawan Bakht
Secretary Finance:  Iftikhar Ali Sahoo
Data of Submission May 28, 2021

Subject: GRANT OF SPECIAL ALLOWANCE – 2021 TO THE EMPLOYEES OF THE GOVERNMENT OF PUNJAB IN BS 1 – 19 WHO ARE NOT RECEIVING ANY CADRE I SERVICE SPECIFIC ALLOWANCE

Federal Government issued notification for reduction of disparities in pay of its employees different Ministries , Attached Departments and other organizations, under the title of Grant of Disparity Reduction Allowance (Annex. A). Moreover, Federal Government recommended to the Provincial Government to consider adopting the proposed disparity allowance for their employees to be funded from provinces own resources.

2. After issuance of the above mentioned notification, employee’s of various provincial Departments started demanding the subject allowance on the analogy of said notification of the Federal Government Accordingly, the Finance Department moved a Note for Principal Secretary to Ch. Minister who conveyed that Chief Minister has desired that the instant matter may be placed before the Provincial Cabinet for its consideration / approval (Annex.B)

3 Subsequently, in pursuance of the directions of the Competent Authority, I&C Wing, S&GAD notified a Ministerial Committee to furnish its recommendations to the Provincial Cabinet to address the issue in a fiscally, sustainable manner (Annex-D).

4. The Ministerial Committee held various meetings under the Chairmanship of Finance Minister / Convener of the Committee and constituted a Sub-committee (Annex-D) to deliberate upon the various possibilities of increase in allowances With reference to reducing the disparity among various employees of the government in consultation with representatives of different Unions of employees and to submit its report to the Ministerial Committee.

05. The Ministerial Committee submitted various options in this regards to the
Chief Minister, Punjab on 20.05.2021, who finally approved to grant a Special Allowance, 2021 @25% of initial Basic Pay Scale 2017 with effect from June 1st 2021 for the employees in B5-1 to 85-19 who are drawing no additional allowance except usual pay and allowances vis-a-vis House Rent Allowance, Conveyance Allowance, Medical Allowance and Adhoc Relief Allowance, 2016, 2017, 2018 and 2019 with the financial Implication of Rs.2.400 Billion per month (Annex-E).

06. The Chief Minister has been pleased that the instant matter may be placed before the Provincial Cabinet for its consideration and approval (Annex-F).

07. Proposal in pars 5/ante is placed before the Provincial Cabinet for consideration and approval.

Iftikhar Ali Sahoo
Secretary Finance