Special Allowance 2024 for Federal Employees: Minimum Gross Salary Rs.37,000

Finance Division raised the minimum gross salary for covered Federal Government civil employees from Rs.32,000 to Rs.37,000 from 1 July 2024; employees below the threshold receive the difference as Special Allowance.

Overview

Finance Division raised the minimum gross salary for covered Federal Government civil employees from Rs.32,000 to Rs.37,000 from 1 July 2024; employees below the threshold receive the difference as Special Allowance.

Key Highlights

  • Revised minimum gross salary: Rs.37,000 per month.
  • Previous minimum gross salary: Rs.32,000 per month.
  • Effective date: 1 July 2024, until further orders.
  • Coverage includes Federal Government civil employees and civilians paid from Defence Estimates, including contingent-paid staff and contract employees appointed against civil posts in Basic Pay Scales on standard terms.
  • Employees whose gross salary is below Rs.37,000 are allowed the difference as Special Allowance.
  • The allowance is subject to income tax; admissible during leave and LPR except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery; not admissible during overseas posting/deputation, but admissible on repatriation at the rate that would otherwise have applied.
  • The allowance was to be met within the 2024-25 budget allocation, with no supplementary grant.

Detailed Explanation

The Finance Division’s Special Allowance 2024 memorandum, F. No. 1(2)R-5/2022 dated 27 August 2024, raised the minimum gross salary for covered Federal Government civil employees from Rs.32,000 to Rs.37,000 per month, with effect from 1 July 2024 and until further orders. Employees below that minimum were to receive the difference as Special Allowance, subject to the memorandum.

Special Allowance 2024: Key Details

  • Revised minimum gross salary: Rs.37,000 per month.
  • Previous minimum gross salary: Rs.32,000 per month.
  • Effective date: 1 July 2024, until further orders.
  • Coverage includes Federal Government civil employees and civilians paid from Defence Estimates, including contingent-paid staff and contract employees appointed against civil posts in Basic Pay Scales on standard terms.
  • Employees whose gross salary is below Rs.37,000 are allowed the difference as Special Allowance.
  • The allowance is subject to income tax; admissible during leave and LPR except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery; not admissible during overseas posting/deputation, but admissible on repatriation at the rate that would otherwise have applied.
  • The allowance was to be met within the 2024-25 budget allocation, with no supplementary grant.

Frequently Asked Questions

What was the revised minimum gross salary in 2024?

Rs.37,000 per month.

What was the earlier minimum?

Rs.32,000 per month.

Who receives the Special Allowance?

Covered employees whose gross salary is below Rs.37,000 receive the difference, subject to the memorandum’s scope and terms.

When did the revised minimum take effect?

1 July 2024.

Is the allowance counted for pension or gratuity?

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

Related EmployeesDesk Resources

Special Allowance 2026 and the Rs.40,700 minimum gross salary

Official Finance Division Office Memorandum

Consult the original memorandum for the complete operative wording: Download the Finance Division notification (PDF).