Disparity Reduction Allowance 2022: 15% for Eligible BPS-1 to BPS-19 Employees
Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.
Overview
Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.
Key Highlights
- Rate: 15% of BPS-2017 basic pay.
- Coverage: eligible Federal Government civil employees in BPS-1 to BPS-19, including the Federal Secretariat, attached departments and subordinate offices.
- Eligibility excludes employees of organizations already drawing additional allowance(s) equal to or above 100% of basic pay or performance allowance.
- The allowance was frozen at the level drawn on 1 March 2022.
- It was subject to income tax; admissible during leave and full LPR except extraordinary leave; and excluded from pension/gratuity emoluments and House Rent recovery.
- It was not admissible during posting or deputation abroad, but resumed on repatriation at the amount that would have applied had the employee not been posted abroad.
- It was admissible during suspension; Basic Pay included personal pay granted for increments beyond the maximum of the existing scale.
Detailed Explanation
Finance Division Office Memorandum F.No.14(1)R-3/2021-69 dated 23 February 2022 approved Disparity Reduction Allowance-2022 at 15% of Basic Pay Scales-2017 basic pay, effective 1 March 2022. It applied to eligible Federal Government civil employees in BPS-1 to BPS-19 who had never been allowed additional allowance or allowances equal to or above 100% of basic pay, whether frozen or otherwise, or a performance allowance.
Key Details of the Notification
- Rate: 15% of BPS-2017 basic pay.
- Coverage: eligible Federal Government civil employees in BPS-1 to BPS-19, including the Federal Secretariat, attached departments and subordinate offices.
- Eligibility excludes employees of organizations already drawing additional allowance(s) equal to or above 100% of basic pay or performance allowance.
- The allowance was frozen at the level drawn on 1 March 2022.
- It was subject to income tax; admissible during leave and full LPR except extraordinary leave; and excluded from pension/gratuity emoluments and House Rent recovery.
- It was not admissible during posting or deputation abroad, but resumed on repatriation at the amount that would have applied had the employee not been posted abroad.
- It was admissible during suspension; Basic Pay included personal pay granted for increments beyond the maximum of the existing scale.
Eligibility and Application
The memorandum set DRA-2022 as an interim disparity-reduction measure for the employee group it defined. It also listed organizations and employees already drawing extra allowances in Annexure-I. The stated conditions form part of the entitlement and must be read with the scope of the memorandum.
Frequently Asked Questions
What is the DRA-2022 rate under the February memorandum?
15% of BPS-2017 basic pay.
Which pay scales are covered?
BPS-1 to BPS-19 Federal Government civil employees who meet the additional-allowance eligibility test.
When did the allowance begin?
1 March 2022.
Is DRA included in pension or gratuity?
No. The memorandum says it is not part of emoluments for calculating pension/gratuity or recovery of House Rent.
Is DRA admissible during overseas posting?
No. It is not admissible during posting or deputation abroad; the memorandum provides for admissibility on repatriation at the rate that would have applied if the employee had not been posted abroad.
Related EmployeesDesk Resources
Official Finance Division Office Memorandum
Consult the original notification for its complete wording, scope and conditions: Download Disparity Reduction Allowance 2022: 15% for Eligible BPS-1 to BPS-19 Employees (PDF).