Appointment Of Civil Servants In Special Pay Scales (PPS, SPPS, MPS)/ Contractual Position

The Finance Division’s Office Memorandum dated 7 September 2026 partially modifies its earlier Memorandum No. 4(9)R-14/2024 dated 1 July 2025. It brings contractual positions within the existing policy for Special Pay Scales and Contractual Positions, covering Management Position Pay Scales (MPS), Project Pay Scales (PPS) and Special Professional Pay Scales (SPPS). The amendment also explains the appointment mechanism and deputation arrangements for eligible Federal Government civil servants.

Key Highlights

• The amendment extends the Special Pay Scales and Contractual Positions policy to include contractual posts alongside MPS, PPS and SPPS positions.
• The amendment is a partial modification of Finance Division O.M. No. 4(9)R-14/2024 dated 1 July 2025.
• A Federal Government civil servant selected through an open competitive process for a covered position in a government-owned corporation, SOE, autonomous body or similar organisation may join the appointment.
• For the stated appointment mechanism, the civil servant is to be treated as being on deputation.
• The applicable deputation conditions are those in Establishment Division O.M. No. 1/13/87-R-I dated 3 December 1990, as amended from time to time, unless otherwise provided.
• For this memorandum, “government-owned” refers to government entities in which the government has a majority stake with management rights.
• The memorandum says “government” includes both Federal and Provincial Governments.

Special Pay Scales and Contractual Positions Covered by the Amendment

The earlier policy referred to Management Position Pay Scales (MPS), Project Pay Scales (PPS) and Special Professional Pay Scales (SPPS). Through the 7 September 2026 Office Memorandum, the Finance Division includes contractual positions in the same policy framework.

The memorandum describes this as a partial modification of the Office Memorandum dated 1 July 2025. It does not reproduce the full earlier policy or state that every other provision of that policy has been replaced. The earlier memorandum should therefore be read alongside this amendment when the complete policy conditions are being considered.

Appointment Mechanism and Applicability for Covered Positions

The substituted text describes the procedure for a Federal Government civil servant who is selected through an open competitive process against one of the covered positions in a government-owned corporation, State-Owned Enterprise (SOE), autonomous body or similar organisation.

In that situation, the civil servant is allowed to join the appointment and is to be considered on deputation. The conditions applicable to the civil servant are those prescribed in the Establishment Division’s Deputation Policy, contained in O.M. No. 1/13/87-R-I dated 3 December 1990, as amended from time to time, unless the Finance Division memorandum provides otherwise.

Which positions are covered?

The amendment names the following position categories:

• Management Position Pay Scales (MPS)
• Project Pay Scales (PPS)
• Special Professional Pay Scales (SPPS)
• Contractual positions

The memorandum adds contractual positions to the policy alongside the three special pay scale categories. It does not provide separate salary tables, pay amounts or a new allowance rate for these positions.

Which organisations are covered by the stated mechanism?

The appointment mechanism refers to government-owned corporations, SOEs, autonomous bodies and similar organisations. The memorandum defines a government-owned entity as one in which the government has a majority stake with management rights. A government entity is not described as government-owned merely because the government has a minority investment without management rights.

Meaning of “government” and the stated applicability

The memorandum expressly states that “government” includes both Federal and Provincial Governments. It then limits the terms and conditions set out in the memorandum to civil servants of the Federal Government of Pakistan proceeding to join positions carrying Special Pay Scales or contractual positions within the Federal Government as well as Provincial Governments.

Accordingly, the wording addresses Federal Government civil servants taking up the covered positions. It should not be read as a general statement that the same terms automatically apply to every Provincial Government employee.

Relationship to Basic Pay Scale (BPS) Instructions

This memorandum concerns appointments to MPS, PPS, SPPS and contractual positions; it does not itself revise the ordinary Basic Pay Scales (BPS) or announce a general BPS allowance. For separate Federal BPS instructions, see EmployeesDesk’s summaries of the 2026 Basic Pay Scales and allowances and the 2022 Basic Pay Scales and allowances. Those BPS instructions are separate from the appointment and deputation provisions in this Office Memorandum.

Deputation Policy Referenced in the Memorandum

The Office Memorandum refers to Establishment Division O.M. No. 1/13/87-R-I dated 3 December 1990 as the source of the deputation conditions, including amendments made from time to time. The Finance Division text also preserves the qualification “unless provided otherwise hereinafter.” Any case-specific assessment should therefore consider the full 1 July 2025 policy, this 7 September 2026 amendment and the applicable version of the Deputation Policy.

Important Reading Note on the PDF

The opening paragraph says that paragraph 3(i) and paragraph 3(iii) of the 1 July 2025 Office Memorandum are substituted. However, the replacement wording reproduced in the supplied five-page PDF shows one item labelled “i. Appointment Mechanism and Applicability”; it does not show a separate replacement item labelled “iii”. This post reports the text visible in the issued PDF and does not infer or create missing wording for paragraph 3(iii). For a decision requiring the exact text of both substituted provisions, obtain clarification or the complete authenticated text from the Finance Division.

Frequently Asked Questions

What does the Special Pay Scales and Contractual Positions memorandum cover?

It adds contractual positions to the existing MPS, PPS and SPPS policy and sets out the appointment mechanism and deputation arrangements described in the Finance Division memorandum.

Does the 2026 memorandum include contractual positions?

Yes. It expressly adds contractual positions to the policy alongside MPS, PPS and SPPS positions.

Can a Federal Government civil servant join a covered position in an SOE or autonomous body?

The memorandum says that where the civil servant is selected through an open competitive process against a covered position in a government-owned corporation, SOE, autonomous body or similar organisation, the civil servant is allowed to join and is considered on deputation under the referenced Deputation Policy, unless otherwise provided.

Does this memorandum announce new pay scales or salary rates?

No new pay table, salary amount or allowance rate is stated in this memorandum. Its subject is the appointment mechanism and applicability of the policy to MPS, PPS, SPPS and contractual positions.

Does it apply to all Provincial Government employees?

The memorandum states that the terms and conditions described in it apply to Federal Government civil servants proceeding to the specified positions within Federal or Provincial Governments. It does not state that the same terms automatically apply to all Provincial Government employees.

Official Finance Division Memorandum

Read the original five-page document before relying on the amendment for an appointment or service matter.

Download the Finance Division Office Memorandum dated 7 September 2026 (PDF)