Grant of Ad-hoc Relief Allowance-2025 to Federal Government Employees

Finance Division Office Memorandum No. F.1(1)IMP/2025 dated 4 July 2025 grants Ad-hoc Relief Allowance-2025 at 10% of running basic pay to the eligible employees and personnel specified in the memorandum. The allowance is effective from 1 July 2025 and continues until further orders, subject to the conditions set out below.

Key Details of Ad-hoc Relief Allowance 2025

• Rate: 10% of running basic pay.
• Effective date: 1 July 2025.
• Coverage: Armed Forces Personnel, Civil Armed Forces, Federal Government civil employees, civilians paid from Defence Estimates and qualifying contract employees employed against civil posts in Basic Pay Scales on standard contract terms.
• Tax: The allowance is subject to income tax.
• Budget: It is to be met from the respective Ministries’, Divisions’ and Departments’ budget allocation for 2025-26; no supplementary grant is to be allowed on this account.

Who Is Covered by ARA-2025?

The memorandum covers Armed Forces Personnel, Civil Armed Forces and civil employees of the Federal Government. It also includes civilians paid from Defence Estimates and contract employees appointed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment.

This is a Federal Government memorandum. The article does not extend the allowance to provincial employees or to other organizations beyond the groups identified in the notification.

How Is the 10% Allowance Calculated?

The notified rate is 10% of running basic pay. The memorandum clarifies that, for this purpose, Basic Pay also includes personal pay granted because annual increments have taken an employee beyond the maximum of the existing pay scale.

Conditions During Leave, LPR and Overseas Posting

• The allowance is subject to income tax.
• It is admissible during leave and the entire period of Leave Preparatory to Retirement (LPR), except extraordinary leave.
• It is not treated as part of emoluments for calculating pension or gratuity, or for recovery of House Rent.
• It is not admissible during the tenure of posting or deputation abroad.
• On repatriation from posting or deputation abroad, it is admissible at the rate and amount that would have applied had the employee not been posted abroad.

Budgetary Arrangement

The memorandum directs that the allowance be accommodated within the budgetary allocation for the financial year 2025-26 by the respective Ministries, Divisions and Departments. It expressly states that no supplementary grants will be allowed for this purpose.

Frequently Asked Questions

What is the rate of Ad-hoc Relief Allowance-2025?

The rate is 10% of running basic pay.

From which date is ARA-2025 effective?

The allowance takes effect from 1 July 2025 and continues until further orders.

Is ARA-2025 admissible during leave?

It is admissible during leave and the entire LPR period, except extraordinary leave.

Is the allowance included in pension or gratuity?

No. The memorandum says it is not treated as part of emoluments for pension or gratuity calculations or House Rent recovery.

Is ARA-2025 payable during an overseas posting?

No. It is not admissible during posting or deputation abroad. On repatriation, it is admissible at the rate and amount that would have applied had the employee not been posted abroad.

Related EmployeesDesk Resources

For the subsequent Federal Government pay structure, see Revised Basic Pay Scales 2026 for Federal Government employees. For the 2026 allowance clarification, see Finance Division’s 2026 pay-scale clarification.

Official Finance Division Office Memorandum

Read the original memorandum for the complete wording: Download Ad-hoc Relief Allowance-2025 notification for Federal Government employees (PDF).