Clarification Regarding Revision Of Basic Pay Scales And Allowances Of Civil Servants Of the Federal Government 2026

Pay Scale Clarification 2026 is the Finance Division’s explanation of how Ad-hoc Relief Allowance-2023 (ARA-2023) and Ad-hoc Relief Allowance-2024 (ARA-2024) are treated after the 2026 revision of Federal Government pay scales and allowances. The Office Memorandum dated 4 August 2026 distinguishes the frozen amounts applicable to employees already in service from the notional percentage rates prescribed for new entrants under Basic Pay Scales-2022 (BPS-2022), with effect from 1 July 2026.

Pay Scale Clarification 2026: Key Allowance Rates

The memorandum gives separate treatment to the two relief allowances. The following table brings together the dates and percentages stated in the clarification.

For new entrants, both sets of percentage rates are calculated on a notional basis with effect from 1 July 2026. The memorandum says the rates will continue until further orders and remain frozen at the same level.

What the Finance Division Clarification Covers

The memorandum refers to the 2026 pay revision instructions, under which special pay, special allowances and allowances calculated as a percentage of pay are generally frozen at the level admissible on 30 June 2026. It then specifies how ARA-2023 and ARA-2024 are to be treated for existing employees and new entrants.

The clarification is not a new general pay scale. It addresses the calculation and frozen treatment of these two earlier relief allowances after the 2026 revision. The percentages for ARA-2023 and ARA-2024 are different, so they should be read separately rather than combined into a single allowance rate.

Ad-hoc Relief Allowance-2023 (ARA-2023)

For employees already in service, ARA-2023 remains frozen at the amount that was admissible on 30 June 2023. The clarification does not replace that existing frozen amount with the new-entrant percentage formula.

For new entrants, the memorandum prescribes the following notional rates:

• BPS-1 to BPS-16: 35% of the minimum of the relevant Basic Pay Scale-2022.
• BPS-17 to BPS-22: 30% of the minimum of the relevant Basic Pay Scale-2022.

These rates apply from 1 July 2026. They continue until further orders and remain frozen at the same level, as stated in the Finance Division memorandum.

Ad-hoc Relief Allowance-2024 (ARA-2024)

For employees already in service, ARA-2024 is frozen at the level admissible on 30 June 2026. This is a different reference date from the one specified for existing employees’ ARA-2023.

For new entrants, the memorandum prescribes these notional rates:

• BPS-1 to BPS-16: 25% of the minimum of the relevant Basic Pay Scale-2022.
• BPS-17 to BPS-22: 20% of the minimum of the relevant Basic Pay Scale-2022.

The ARA-2024 new-entrant rates also take effect from 1 July 2026 and remain frozen until further orders.

How to Understand the Notional Calculation

Under the Pay Scale Clarification 2026, “calculated on a notional basis” means that the stated percentage is applied to the minimum pay of the relevant BPS-2022 scale for the employee’s pay-scale group. The clarification does not say to calculate the allowance by applying the percentage to a higher personal basic-pay figure.

For example, the formula for a new entrant in BPS-1 to BPS-16 is the relevant BPS-2022 minimum multiplied by 35% for ARA-2023, or by 25% for ARA-2024. For a new entrant in BPS-17 to BPS-22, the corresponding percentages are 30% and 20%. These examples explain the formula only; they are not individual rupee calculations.

The memorandum provides percentages and the applicable pay-scale basis. It does not include a rupee-value table for every BPS. An exact amount therefore requires the minimum of the employee’s relevant BPS-2022 scale and the applicable allowance percentage.

Pay Scale Clarification 2026 for Existing Employees and New Entrants

The Pay Scale Clarification 2026 uses two different methods. For employees already in service, it preserves a previously admissible amount by freezing it on the relevant reference date. For new entrants, it states a notional percentage of the minimum of the relevant BPS-2022 scale.

The reference date is not the same for both allowances for existing employees:

• ARA-2023: amount admissible on 30 June 2023.
• ARA-2024: level admissible on 30 June 2026.

For new entrants, both ARA-2023 and ARA-2024 use the notional percentage method from 1 July 2026. The memorandum does not provide a separate rupee amount for each BPS in this clarification.

Issue Date, Reference Number and Effective Date

The Finance Division issued the clarification through Office Memorandum No. F.1(2)IMP/2026-0004, dated 4 August 2026. The notional rates for new entrants under both allowances apply with effect from 1 July 2026.

The issue date and effective date serve different purposes: 4 August 2026 is the date of the memorandum, while 1 July 2026 is the date from which the specified new-entrant rates apply. The memorandum states that these rates will continue until further orders and remain frozen at the same level; it does not set a fixed end date.

Official Memorandum and Related Pay-Scale Resources

Read the official Finance Division Office Memorandum dated 4 August 2026 (PDF) for the original wording and instructions.

For the underlying pay-scale structure, see EmployeesDesk’s Basic Pay Scales 2022 and allowances for Federal Government employees. For the later 2026 pay revision, see Revision of Basic Pay Scales and Allowances of Federal Government Civil Servants 2026. The related Conveyance Allowance 2026 rates are covered separately.

Frequently Asked Questions

When did the Finance Division issue the clarification?

The memorandum was issued on 4 August 2026.

What is the ARA-2023 rate for new entrants?

It is 35% of the minimum of the relevant BPS-2022 for BPS-1 to BPS-16, and 30% for BPS-17 to BPS-22, calculated on a notional basis.

What is the ARA-2024 rate for new entrants?

It is 25% of the minimum of the relevant BPS-2022 for BPS-1 to BPS-16, and 20% for BPS-17 to BPS-22, calculated on a notional basis.

From which date do the new-entrant rates apply?

Both sets of rates apply from 1 July 2026.

At what amount is the allowance calculated for new entrants?

The percentage is applied to the minimum of the relevant BPS-2022 scale, not to a higher personal basic-pay figure.

Are the new-entrant rates temporary?

The memorandum says that the rates continue until further orders and remain frozen at the same level. It does not specify a fixed end date.

Does the clarification provide exact rupee amounts for each BPS?

No. It specifies the percentages and the BPS-2022 minimum-pay basis. The individual amount depends on the minimum of the relevant scale.