ISLAMABAD: The ministry of finance has notified revision in basic pay scales and allowances of civil servants of federal government – 2017. The significance of changes is that the ad hoc allowance for 2017 will be subjected to income tax.
According to the notification issued on Monday, the following are the criteria for the calculation of pay scales and allowances to be applicable from July 01, 2017.
Revision of basic pay scales: The basic pay scales-2017 shall replace the basic pay scale-2016 with effect from July 01, 2017.
Fixation of pay of the existing employees: (i) The basic pay of an employee in service on June 30, 2017 shall be fixed in the basic pay scale-2017 on point to point basis i.e at the stage corresponding to that occupied by him/her above the minimum of basic pay scales-2016; (ii) In case of personal pay being drawn by an employee as part of his/her basic pay beyond the maximum of his/her pay scale on June 30, 2017, he/she shall continue to draw such pay in the basic pay scales-2017 at the revised rates.
Fixation of pay on promotion: In case of promotion from a lower to higher posts/scale before introduction of these scales, the pay of the employees concerned in the revised pay scale may be fixed and so enhanced that it would not be less than the pay that would have been admissible to him if his promotion to the higher post/scale had taken place after the introduction of these scales.
Annual increment: Annual increment shall continue to be admissible, subject to the existing condition, on first December each year.
Adhoc allowance-2010: (i) The adhoc allowance 2010 at 50 percent granted w.e.f July 1, 2010 vide finance division’s OM No. F. 1. (1)Imp/2010-622, dated July 5, 2010, shall cease to exist with effect from July 1, 2017; (ii) For those who are in receipt of allowance equal to 100 percent of basic pay in BPS-2008 as on June 30, 2011 and not in receipt adhoc allowance 2010 at 50 percent, the existing amount of 100 percent allowance (being drawn at frozen level) shall be reduced by 50 percent w.e.f July 1, 2017. The remaining amount shall continue to be drawn at reduced frozen level; (ii) For those who are in receipt of allowance equal to 100 percent basic pay in BPS 2011 as on June 30, 2015 and not in receipt of adhoc allowance 2010 at 50 percent, the existing amount of 100 percent allowance (being drawn at frozen level) shall be reduced w.e.f. July 1, 2017 by 50 percent of the amount to be calculated at the level admissible on June 30, 2011. The remaining amount shall continue to be drawn at reduced frozen level.
Adhoc relief allowance 2016: (A) The adhoc relief 2016 at 10 percent shall stand frozen at the level of its admissibility as on June 30, 2017; (B) All the new entrants shall be allowed adhoc relief allowance 2016 at 10 percent of the minimum of relevant basic pay scales 2016 on national basis with effect from July 1, 2017, till further orders, and shall stand frozen at the same level.
Adhoc relief allowance 2017: A) An adhoc relief allowance 2017 at 10 percent of the running basic pay of BPS 2017 shall be allowed to the civil employees of the federal government as well as civilians paid out of 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 with effect from July 1, 2017, till further orders; (b) The adhoc relief allowance will be subject to income tax; (c) The adhoc relief allowance will be admissible during leave and entire period of LPR except during extra ordinary leave; (d) The adhoc relief allowance will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent; (e) The adhoc relief allowance will not admissible to the employees during the tenure of their posting/deputation abroad; (f) The adhoc relief 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; (g) The adhoc relief allowance will be admissible during the period of suspension; (h) The term basic pay will also include the amount of personal 0pqaqy granted on account of annual increment (s) beyond the maximum of the existing pay scales.
Special pay and allowances: All the special pays, special allowance or the allowances admissible as percentage of pay (excluding those which are kept by fixing maximum limit) including house rent allowance and the allowance /special allowance equal to one month basic pay, granted to federal government employees irrespective of his/her posting in ministry/divisions/department/office etc. including civil employees in BPS 1-22 of judiciary shall stand frozen at the level of its admissibility as on June 30, 2017.
Orderly allowance for BPS-20 to 22: The rates of orderly allowance shall be revised as follows: Existing rate: Rs. 12,000/per month, Revised rate: Rs. 14,000/per month.
Option: (1) The ministry/division/departments/office to which an employee belongs and/or on whose pay roll he/she is borne shall obtained an option in writing from such employees within 30 days commencing from the date of issue of this office memorandum and communicate it to the concerned account office/DDO, as the case may be, either to continue to draw salary in the scheme of basic pay scale-2016 or in the scheme of basic pay scales 2017 as specified in this office memorandum. Option once exercised shall be considered final.
An existing employee, as aforesaid, who does not exercise and communicate his/her potion within specified time limit, shall be deemed to have opted for the scheme of basic pay scales 2017.
All the existing rules r orders on the subject shall be considered to have been modified to the extent indicated above. All the existing rules or orders not so modified, shall continue to be in force under this scheme.
Anomalies: An anomalies committee shall be set up in the Finance Division (Regulations Wing) to resolve the anomalies, if any, arising out in the implementation of the basic pay scales 2017.