Pay Scale Clarification 2026: Allowances for Federal Civil Servants
The Finance Division issued this pay scale clarification for 2026 on 4 August 2026 to explain how Ad-hoc Relief Allowance-2023 and Ad-hoc Relief Allowance-2024 will be treated after the revision of federal basic pay scales and allowances. It mainly clarifies which allowance amounts remain frozen for existing employees and how the rates will be calculated for new entrants.
What Does the 2026 Pay Scale Clarification Say?
The memorandum refers to the 2026 pay revision instructions, under which special pay, special allowances and allowances calculated as a percentage of pay are generally frozen at the level admissible on 30 June 2026. It then explains the specific treatment of the 2023 and 2024 Ad-hoc Relief Allowances.
Ad-hoc Relief Allowance-2023
For employees already in service, Ad-hoc Relief Allowance-2023 remains frozen at the amount admissible on 30 June 2023.
For new entrants, the memorandum provides these rates:
- BPS-1 to BPS-16: 35% of the minimum of the relevant Basic Pay Scale-2022.
- BPS-17 to BPS-22: 30% of the minimum of the relevant Basic Pay Scale-2022.
These rates are calculated on a notional basis from 1 July 2026. They will continue until further orders and remain frozen at the same level.
Ad-hoc Relief Allowance-2024
For existing employees, Ad-hoc Relief Allowance-2024 is frozen at the level admissible on 30 June 2026. The memorandum specifies the following rates for new entrants:
- BPS-1 to BPS-16: 25% of the minimum of the relevant Basic Pay Scale-2022.
- BPS-17 to BPS-22: 20% of the minimum of the relevant Basic Pay Scale-2022.
These rates are also calculated on a notional basis with effect from 1 July 2026. They will remain in force until further orders and will be frozen at the same level.
What Does “Calculated on a Notional Basis” Mean?
For new entrants, the percentage is applied to the minimum pay of the relevant BPS-2022 scale to work out the allowance. It is not calculated using a higher personal basic-pay figure. The memorandum sets out these percentages and the effective date but does not provide individual rupee amounts for each scale.
Effective Date of the Clarification
The Finance Division issued this clarification through Office Memorandum No. F.1(2)IMP/2026-0004, dated 4 August 2026. The specified treatment for new entrants under both allowances applies from 1 July 2026 and continues until further orders.
Frequently Asked Questions
When was the clarification issued?
The Finance Division issued it on 4 August 2026.
What is the ARA-2023 rate for new entrants?
It is 35% for BPS-1 to BPS-16 and 30% for BPS-17 to BPS-22, calculated on the minimum of the relevant BPS-2022 on a notional basis.
What is the ARA-2024 rate for new entrants?
It is 25% for BPS-1 to BPS-16 and 20% for BPS-17 to BPS-22, calculated on the minimum of the relevant BPS-2022 on a notional basis.
From which date do the new-entrant rates apply?
Both sets of new-entrant rates apply from 1 July 2026.
Will these new-entrant rates change automatically?
The memorandum says they will continue until further orders and remain frozen at the same level. It does not give a fixed end date.