Disparity Reduction Allowance 2022: 15% for Eligible BPS-1 to BPS-19 Employees

Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.

Overview

Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.

Key Highlights

  • Rate: 15% of BPS-2017 basic pay.
  • Coverage: eligible Federal Government civil employees in BPS-1 to BPS-19, including the Federal Secretariat, attached departments and subordinate offices.
  • Eligibility excludes employees of organizations already drawing additional allowance(s) equal to or above 100% of basic pay or performance allowance.
  • The allowance was frozen at the level drawn on 1 March 2022.
  • It was subject to income tax; admissible during leave and full LPR except extraordinary leave; and excluded from pension/gratuity emoluments and House Rent recovery.
  • It was not admissible during posting or deputation abroad, but resumed on repatriation at the amount that would have applied had the employee not been posted abroad.
  • It was admissible during suspension; Basic Pay included personal pay granted for increments beyond the maximum of the existing scale.

Detailed Explanation

Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.

Key Details of the Notification

  • Rate: 15% of BPS-2017 basic pay.
  • Coverage: eligible Federal Government civil employees in BPS-1 to BPS-19, including the Federal Secretariat, attached departments and subordinate offices.
  • Eligibility excludes employees of organizations already drawing additional allowance(s) equal to or above 100% of basic pay or performance allowance.
  • The allowance was frozen at the level drawn on 1 March 2022.
  • It was subject to income tax; admissible during leave and full LPR except extraordinary leave; and excluded from pension/gratuity emoluments and House Rent recovery.
  • It was not admissible during posting or deputation abroad, but resumed on repatriation at the amount that would have applied had the employee not been posted abroad.
  • It was admissible during suspension; Basic Pay included personal pay granted for increments beyond the maximum of the existing scale.

Eligibility and Application

The memorandum set DRA-2022 as an interim disparity-reduction measure for the employee group it defined. It also listed organizations and employees already drawing extra allowances in Annexure-I. The stated conditions form part of the entitlement and must be read with the scope of the memorandum.

Frequently Asked Questions

What is the DRA-2022 rate under the February memorandum?

15% of BPS-2017 basic pay.

Which pay scales are covered?

BPS-1 to BPS-19 Federal Government civil employees who meet the additional-allowance eligibility test.

When did the allowance begin?

1 March 2022.

Is DRA included in pension or gratuity?

No. The memorandum says it is not part of emoluments for calculating pension/gratuity or recovery of House Rent.

Is DRA admissible during overseas posting?

No. It is not admissible during posting or deputation abroad; the memorandum provides for admissibility on repatriation at the rate that would have applied if the employee had not been posted abroad.

Related EmployeesDesk Resources

DRA-2025 and DRA-2026

Official Finance Division Office Memorandum

Consult the original notification for its complete wording, scope and conditions: Download Disparity Reduction Allowance 2022: 15% for Eligible BPS-1 to BPS-19 Employees (PDF).