Compensatory Allowance for Federal Employees on Deputation: DRA-2025 Adjustment
Finance Division's 18 July 2025 memorandum directs that DRA-2025 at 30% of basic pay as on 30 June 2022 be deducted from compensatory allowance for affected Federal Government employees on deputation.
Overview
Finance Division’s 18 July 2025 memorandum directs that DRA-2025 at 30% of basic pay as on 30 June 2022 be deducted from compensatory allowance for affected Federal Government employees on deputation.
Key Highlights
- DRA-2025 is stated at 30% of running basic pay as on 30 June 2022 for offices already in receipt of DRA.
- DRA is taken into account when calculating Compensatory Allowance for Federal Government employees serving on deputation under the terms of the earlier 29 November 2023 memorandum.
- For officers drawing Compensatory Allowance on 1 July 2025 in offices receiving DRA, the Compensatory Allowance is to be reduced by the DRA-2025 amount at 30%, effective 1 July 2025.
- Ministries and Divisions are asked to circulate the instructions to departments, autonomous and semi-autonomous bodies and corporate bodies under their administrative control.
- The memorandum is copied to the Controller General of Accounts and AGPR for implementation.
Detailed Explanation
The Finance Division’s 2025 instructions on Compensatory Allowance on Deputation are contained in Office Memorandum No. F.5(9)IMP/2025 dated 18 July 2025. The memorandum directs that DRA-2025 be deducted from Compensatory Allowance payable to affected Federal Government officers, with effect from 1 July 2025.
Compensatory Allowance on Deputation 2025: Key Details
- DRA-2025 is stated at 30% of running basic pay as on 30 June 2022 for offices already in receipt of DRA.
- DRA is taken into account when calculating Compensatory Allowance for Federal Government employees serving on deputation under the terms of the earlier 29 November 2023 memorandum.
- For officers drawing Compensatory Allowance on 1 July 2025 in offices receiving DRA, the Compensatory Allowance is to be reduced by the DRA-2025 amount at 30%, effective 1 July 2025.
- Ministries and Divisions are asked to circulate the instructions to departments, autonomous and semi-autonomous bodies and corporate bodies under their administrative control.
- The memorandum is copied to the Controller General of Accounts and AGPR for implementation.
Frequently Asked Questions
Does the memorandum introduce a new Compensatory Allowance rate?
It addresses the calculation where the office receives DRA-2025. It directs that the DRA amount be reduced from the Compensatory Allowance.
What DRA rate is used in the calculation?
DRA-2025 at 30% of running basic pay as on 30 June 2022 for offices already receiving DRA.
From which date is the adjustment effective?
1 July 2025.
Which employees are addressed?
Federal Government employees serving on deputation who were drawing Compensatory Allowance on 1 July 2025 in offices receiving DRA.
Related EmployeesDesk Resources
Disparity Reduction Allowance-2025
Official Finance Division Office Memorandum
Consult the original memorandum for the complete operative wording: Download the Finance Division notification (PDF).