Special Allowance 2023 for Federal Employees: Rs.32,000 Minimum Gross Salary
Finance Division's 2 November 2023 memorandum set the minimum gross salary for covered Federal Government civil employees at Rs.32,000 from 1 July 2023; employees below the threshold receive the difference as Special Allowance.
Overview
Finance Division's 2 November 2023 memorandum set the minimum gross salary for covered Federal Government civil employees at Rs.32,000 from 1 July 2023; employees below the threshold receive the difference as Special Allowance.
Key Highlights
- Minimum gross salary: Rs.32,000 per month.
- Effective date: 1 July 2023, until further orders.
- Coverage includes Federal Government civil employees and civilians paid from Defence Estimates, including contingent-paid staff and qualifying contract employees employed against civil posts in Basic Pay Scales on standard contract terms.
- Employees with gross salary below Rs.32,000 were to receive the difference as Special Allowance.
- The allowance is subject to income tax; admissible during leave and the entire LPR period except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery.
- It is not admissible during posting or deputation abroad; on repatriation, it is admissible at the rate and amount that would have applied had the employee not been posted abroad.
- The allowance is to be met within the 2023-24 budget allocation; no supplementary grant is provided.
Detailed Explanation
Finance Division Office Memorandum F. No. 1(2)R-5/2022 dated 2 November 2023 confirmed a minimum gross salary of Rs.32,000 per month for covered Federal Government civil employees, effective from 1 July 2023 and until further orders. Employees whose gross salary was below Rs.32,000 were to be allowed the difference as Special Allowance.
Key Details of the Notification
- Minimum gross salary: Rs.32,000 per month.
- Effective date: 1 July 2023, until further orders.
- Coverage includes Federal Government civil employees and civilians paid from Defence Estimates, including contingent-paid staff and qualifying contract employees employed against civil posts in Basic Pay Scales on standard contract terms.
- Employees with gross salary below Rs.32,000 were to receive the difference as Special Allowance.
- The allowance is subject to income tax; admissible during leave and the entire LPR period except extraordinary leave; excluded from pension/gratuity emoluments and House Rent recovery.
- It is not admissible during posting or deputation abroad; on repatriation, it is admissible at the rate and amount that would have applied had the employee not been posted abroad.
- The allowance is to be met within the 2023-24 budget allocation; no supplementary grant is provided.
Scope and Application
The revised rates apply only to the employee groups and locations specified in the Finance Division memorandum. Employees should verify the area classification and applicable BPS group with their administrative department before making an individual claim.
Frequently Asked Questions
What was the minimum gross salary in 2023?
Rs.32,000 per month.
Who was eligible for the Special Allowance?
Covered Federal Government civil employees and the other groups listed in the memorandum whose gross salary was below Rs.32,000.
From when did the threshold apply?
1 July 2023.
Was the allowance included in pension or gratuity?
No. The memorandum excluded it from emoluments for pension/gratuity calculations and House Rent recovery.
Related EmployeesDesk Resources
Special Allowance 2024 — Rs.37,000 minimum gross salary and Special Allowance 2026 — Rs.40,700 gross salary threshold
Official Finance Division Office Memorandum
Consult the original notification for the full wording and all applicable conditions: Download the Finance Division memorandum (PDF).