Disparity Reduction Allowance 2021: 25% for BPS-20 to BPS-22 Officers
Finance Division Office Memorandum F.No.14(1)R-3/2021-324 dated 8 July 2021 sanctioned Disparity Reduction Allowance at 25% of BPS-2017 basic pay with effect from 1 July 2021 for Federal Government civil employees in BPS-20 to BPS-22, including employees of the Federal Secretariat and attached departments, who had not been allowed additional allowance(s) equal to or above 100% of basic pay or a performance allowance.
Overview
Finance Division Office Memorandum F.No.14(1)R-3/2021-324 dated 8 July 2021 sanctioned Disparity Reduction Allowance at 25% of BPS-2017 basic pay with effect from 1 July 2021 for Federal Government civil employees in BPS-20 to BPS-22, including employees of the Federal Secretariat and attached departments, who had not been allowed additional allowance(s) equal to or above 100% of basic pay or a performance allowance.
Key Highlights
- Rate: 25% of BPS-2017 basic pay.
- Coverage: eligible Federal Government civil employees in BPS-20 to BPS-22, including Federal Secretariat and attached departments.
- Employees in the organizations listed in Annexure-I, and employees already drawing additional allowances equal to or above 100% of basic pay, were excluded.
- The allowance was frozen at the level drawn on 1 July 2021 and subject to income tax.
- It was admissible during leave and LPR except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery.
- It was not admissible during posting/deputation abroad, but was admissible on repatriation at the amount that would have applied if the employee had not been posted abroad.
- It was admissible during suspension; Basic Pay included relevant personal pay beyond the maximum of the existing scale.
Detailed Explanation
Finance Division Office Memorandum F.No.14(1)R-3/2021-324 dated 8 July 2021 sanctioned Disparity Reduction Allowance at 25% of BPS-2017 basic pay with effect from 1 July 2021 for Federal Government civil employees in BPS-20 to BPS-22, including employees of the Federal Secretariat and attached departments, who had not been allowed additional allowance(s) equal to or above 100% of basic pay or a performance allowance.
Key Details of the Notification
- Rate: 25% of BPS-2017 basic pay.
- Coverage: eligible Federal Government civil employees in BPS-20 to BPS-22, including Federal Secretariat and attached departments.
- Employees in the organizations listed in Annexure-I, and employees already drawing additional allowances equal to or above 100% of basic pay, were excluded.
- The allowance was frozen at the level drawn on 1 July 2021 and subject to income tax.
- It was admissible during leave and LPR except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery.
- It was not admissible during posting/deputation abroad, but was admissible on repatriation at the amount that would have applied if the employee had not been posted abroad.
- It was admissible during suspension; Basic Pay included relevant personal pay beyond the maximum of the existing scale.
Eligibility and Application
The memorandum contains an Annexure-I list of organizations and employees drawing extra allowances, whose employees were not eligible under this arrangement. It also states that implementation issues would be resolved by a committee notified through a separate Finance Division memorandum dated 8 July 2021.
Frequently Asked Questions
What was the DRA rate for BPS-20 to BPS-22 in 2021?
25% of BPS-2017 basic pay.
When did it take effect?
1 July 2021.
Did it apply to every BPS-20 to BPS-22 officer?
No. The employee had to meet the stated test concerning additional allowances or performance allowance, and Annexure-I exclusions also applied.
Was it payable during extraordinary leave?
No. The memorandum excluded extraordinary leave.
Related EmployeesDesk Resources
Official Finance Division Office Memorandum
Consult the original notification for its complete wording, scope and conditions: Download Disparity Reduction Allowance 2021: 25% for BPS-20 to BPS-22 Officers (PDF).