Revision Of Basic Pay Scales And Grant Of Adhoc Relief Allowance-2026 To the Executive / Supervisory Staff Of Autonomous / Semi Autonomous Bodies, Corporations Etc.

Finance Division Office Memorandum No. 4(3)R-4/2011-P-001-0002 dated 27 July 2026 addresses revision of basic pay scales and grant of Ad-hoc Relief Allowance-2026 to executive and supervisory staff of autonomous and semi-autonomous bodies, corporations and related organizations. It explains when the 7% allowance may apply and the approvals required for organizations that have not adopted the Federal Government pay-scale scheme in totality.

Key Directions In the 27 July 2026 Memorandum

• Ad-hoc Relief Allowance-2026 is set at 7% of running basic pay of BPS-2026, subject to existing conditions.
• The allowance applies to employees of autonomous/semi-autonomous bodies and corporations that have adopted the Federal Government Basic Pay Scales Scheme in totality.
• Organizations with different pay scales or allowances need concurrence of the Finance Division Standing Committee, on the recommendation of their Boards of Directors/Governors.
• Approval is to be tagged with the financial position of the organization.
• Executive/supervisory cases are to be forwarded with Board recommendations; non-executive/non-supervisory staff may be allowed the benefit on the same analogy with Board approval.

Organizations That Have Adopted Federal Pay Scales In Totality

Paragraph 1 says the 2026 Ad-hoc Relief Allowance, at 7% of the running basic pay of BPS-2026, will also apply to employees of autonomous and semi-autonomous bodies and corporations that have adopted the Federal Government’s Basic Pay Scales Scheme in totality. The allowance is subject to the existing terms and conditions and is effective from 1 July 2026.

Organizations With Different Pay Scales Or Allowances

Paragraph 2 states that the general direction does not automatically apply to public-sector corporations and autonomous or semi-autonomous bodies that have adopted different pay scales or allowances. For those organizations, the 7% Ad-hoc Relief Allowance may be allowed with concurrence of the Finance Division Standing Committee, based on recommendations of the respective Board of Directors or Governors.

The memorandum further states that the grant of the allowance will invariably be tagged with the financial position of the organization. This means that the applicable approval and financial assessment remain relevant; the document does not create an unconditional entitlement for every autonomous body.

Approval Process For Executive And Supervisory Staff

Paragraph 3 clarifies that autonomous and semi-autonomous bodies and corporations are to forward cases of executive/supervisory staff, with recommendations of their respective Boards, for Finance Division concurrence. The proposed allowance is 7% of running BPS-2026 basic pay, subject to existing conditions, from 1 July 2026.

On the same analogy, the benefit may subsequently be allowed to non-executive/non-supervisory staff with approval of the respective Board of Directors or Governors. The memorandum therefore separates Finance Division concurrence for executive/supervisory cases from the Board approval stated for the non-executive/non-supervisory extension.

Finance Division Consultation And Rules Of Business

Paragraph 4 draws attention to paragraph (h) of sub-rule (1) of Rule 12 of the Rules of Business, 1973. It states that no Division may, without prior consultation with Finance Division, issue orders involving changes in Government servants’ terms and conditions of service or their statutory rights and privileges where financial implications are involved. It also refers to a Supreme Court judgment in Civil Appeals No. 1428 to 1436 of 2016 concerning the binding nature of the Rules of Business, 1973.

Administrative Compliance And Reporting Deadline

Paragraph 5 requires administrative Ministries and Divisions responsible for autonomous and semi-autonomous bodies and corporations to ensure changes in pay, allowances and privileges of executive/supervisory staff are processed in accordance with Finance Division O.M. No. F.1(1)Imp/94 dated 26 June 1999.

Paragraph 6 notes that Ministries and Divisions had previously been asked to provide lists of the bodies under their administrative control, including their pay structures and whether Finance Division concurrence had been obtained for Ad-hoc and other allowances. Where approval has not been sought, the case is to be initiated and forwarded for consideration by the Finance Division Standing Committee and final approval by the Secretary, Finance Division.

Paragraph 7 directs all Ministries and Divisions to comply and submit a report by 15 August 2026, and to convey the instructions to the autonomous and semi-autonomous bodies and corporations under their administrative control for necessary action during FY 2026-27.

Frequently Asked Questions

What is the Ad-hoc Relief Allowance rate under this memorandum?

The memorandum refers to 7% of the running basic pay of BPS-2026, subject to existing conditions.

Does the allowance automatically apply to all autonomous bodies?

No. The general extension applies to organizations that have adopted the Federal Government Basic Pay Scales Scheme in totality. Organizations with different pay scales or allowances require Finance Division Standing Committee concurrence on Board recommendations.

What is the effective date?

The memorandum states 1 July 2026.

Are Board approvals required?

Yes. The memorandum requires Board recommendations for executive/supervisory cases sent for Finance Division concurrence and Board approval for the subsequent analogous allowance for non-executive/non-supervisory staff.

Related EmployeesDesk Resources

For related guidance, see Federal Basic Pay Scales and Allowances 2026. For related guidance, see Disparity Reduction Allowance-2026.

Official Finance Division Office Memorandum

Consult the original nine-page document for the complete implementation wording and distribution list.

Download the Finance Division memorandum dated 27 July 2026 (PDF)