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Home Business

Govt gives employees ‘parting gift’ with 50pc allowance hike

by News Publishing
August 9, 2023
in Business
Reading Time: 3 mins read
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Govt gives employees ‘parting gift’ with 50pc allowance hike
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The present government, which was scheduled to conclude its term today, has officially announced a flat 50 percent rise in the daily travel and mileage allowances for all government employees engaged in official duties.

As per a notice released by the Ministry of Finance on Tuesday, the revised allowances within the country will now stand at a maximum special rate of Rs7,200 per day for Grade 22 employees, followed by Rs6,000 for Grade 21, and Rs4,920 for those in Grade 19 and 20.

Similarly, the highest special daily rate for Grade 17 and 18 employees has been set at Rs3,840, followed by Rs2,160 for Grades 12 to 16, Rs1,320 for Grades 5 to 11, and Rs1,200 per day for Grades 1 to 4.

These adjusted allowances are applicable from July 1. The highest daily rates range from Rs1,200 for Grade 1 to Rs7,200 per day for Grade 22 personnel.
Furthermore, the transportation expenses have also been enhanced by 50 percent to Rs7.5 per kilometer for cars and Rs3.75 for motorcycles. The mileage reimbursement per kilometer has been elevated by 50 percent to Rs15 for personal cars or taxis, Rs6 for motorcycles, Rs3 for bicycles, and Rs3.75 for public transportation.

For Grade 17 and above, air travel expenses will be reimbursed at actual cost, while the reimbursement for carrying personal effects upon retirement or transfer has been raised to Rs0.03 per kilogram per kilometer.

The aforementioned daily allowance rates are applicable to specific locations that are designated for special rates, which include cities such as Hyderabad, Karachi, Sukkur, Bahawalpur, Dera Ghazi Khan, Multan, Quetta, Sargodha, Sialkot, Lahore, Gujranwala, Rawalpindi, Islamabad, Faisalabad, Peshawar, Gwadar, Gilgit-Baltistan, and Muzaffarabad and Mirpur in Azad Jammu and Kashmir.

In a similar manner, the regular daily allowance rates for other outstations have been increased by 50 percent to Rs4,200 for Grade 21 and 22 employees, Rs3,720 for Grade 19 and 20, Rs3,000 for Grade 17 and 18, up to Rs1,680 for Grade 12 to 16, Rs936 for Grade 5 to 11, and Rs744 for Grade 1 to 4 employees.

The daily allowance will be applicable only for the actual nights spent at the outstation for which the allowance is claimed. In cases where an overnight stay is not involved and the absence from the headquarters surpasses four hours, a half-daily allowance will be granted.

These revised rates will not be applicable where 20 fixed daily allowances for operational duties are already included in the salary, and they will be granted at the existing rates as of June 30 of this year.

Government employees up to BPS 1-19 may utilize government guest houses, public sector corporations, rest houses, motels, and hotels (excluding five-star establishments). They can claim the actual room rental charges by presenting receipts, subject to a maximum of three daily allowances in specified stations and one and a half daily allowances in non-specified stations.

In cases where no hotel accommodation receipt is provided, the accommodation charge rate will be permissible, equivalent to two daily allowances in specified stations and one allowance in non-specified stations.

For government servants in Grades 20 and above, they may lodge in hotels and claim room rental charges with receipts, up to a maximum of three daily allowances for specified stations and one and a half daily allowances for non-specified stations. If the room rent charges exceed the set ceiling, the government will cover 50 percent of the excess amount.

Meanwhile, comparable increments have also been announced for government employees stationed abroad in diplomatic missions, concerning foreign and entertainment allowances paid in US dollars, based on the United Nations non-housing consumer price index. A separate rate schedule for these allowances has been communicated for each diplomatic mission, contingent on various regions and countries.

Tags: allowance hikeGovt employees
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