Conveyance Allowance 2026: Revised Rates for Federal Government Employees
The Ministry of Finance has approved a 50% increase in the monthly conveyance allowance admissible to Federal Government civil servants working in BPS-1 to BPS-22. The revised rates take effect from 1 July 2026 under Office Memorandum No. 3(1)R-5/2010-P-001, dated 21 July 2026. The increase is subject to the existing terms and conditions.
Revised Conveyance Allowance Rates for BPS-1 to BPS-22
The Finance Division memorandum revises the monthly conveyance allowance rates as follows:
| BPS | Existing Rate (Per Month) | Revised Rate (Per Month) | Monthly Increase |
|---|---|---|---|
| 1–4 | Rs. 1,785 | Rs. 2,678 | Rs. 893 |
| 5–10 | Rs. 1,932 | Rs. 2,898 | Rs. 966 |
| 11–15 | Rs. 2,856 | Rs. 4,284 | Rs. 1,428 |
| 16–22 | Rs. 5,000 | Rs. 7,500 | Rs. 2,500 |
The revised rates in the third column are reproduced from the official memorandum. The monthly increase column is calculated as the difference between the revised and existing rates.
What Is the Increase in Conveyance Allowance?
The Federal Government has enhanced the existing monthly conveyance allowance by 50% for the covered BPS-1 to BPS-22 civil servants. The revised amount varies according to the employee’s Basic Pay Scale group, as shown in the rate table above.
Who Is Covered by the Revised Rates?
The memorandum concerns civil servants of the Federal Government working in BPS-1 to BPS-22. It does not announce a corresponding revision for provincial government employees. The circular keeps the existing terms and conditions applicable to the allowance.
Effective Date of the Revised Conveyance Allowance
The revised conveyance allowance rates are effective from 1 July 2026. The Ministry of Finance issued the Office Memorandum on 21 July 2026 under reference No. 3(1)R-5/2010-P-001.
Existing Terms and Conditions
The memorandum states that the 50% enhancement will apply on the existing terms and conditions. It does not set out a new set of eligibility rules or replace the existing conditions governing the allowance. Employees should therefore refer to the applicable departmental rules and instructions for those conditions.
Frequently Asked Questions
What is the new conveyance allowance for BPS-1 to BPS-4?
The revised monthly rate for BPS-1 to BPS-4 is Rs. 2,678, compared with the previous rate of Rs. 1,785.
What is the revised conveyance allowance for BPS-5 to BPS-10?
The revised monthly rate is Rs. 2,898, increased from Rs. 1,932.
What is the revised conveyance allowance for BPS-11 to BPS-15?
The revised monthly rate is Rs. 4,284, increased from Rs. 2,856.
What is the new conveyance allowance for BPS-16 to BPS-22?
The revised monthly rate for BPS-16 and above within the covered BPS-1 to BPS-22 range is Rs. 7,500, increased from Rs. 5,000.
From which date are the revised rates applicable?
The revised rates are effective from 1 July 2026.
Has the conveyance allowance been increased by 50%?
Yes. The Finance Division memorandum approves an enhancement of 50% of the existing monthly amount, subject to the existing terms and conditions.