Standard Pay Package For the Project Staff Directly Recruited For Development Projects Funded From PSDP
Finance Division's 5 March 2026 memorandum revises the Standard Pay Package for project staff directly recruited for PSDP-funded development projects, effective 1 July 2026, and sets PPS-1 to PPS-12 salary ranges and appointment/pay-fixation rules.
Overview
Finance Division's 5 March 2026 memorandum revises the Standard Pay Package for project staff directly recruited for PSDP-funded development projects, effective 1 July 2026, and sets PPS-1 to PPS-12 salary ranges and pay-fixation rules.
Key Highlights
- Revised Standard Pay Package PPS-1 to PPS-12
- Effective 1 July 2026 for new and ongoing PSDP projects
- Fresh appointments placed at initial PPS stage
- Existing staff fixed at next higher stage
- Annual increment 3% of initial stage after one year continuous service
- Full-time deputation allowance 20%, subject to maximum Rs.20,000
Detailed Explanation
Finance Division Office Memorandum No. F.NO.4(9)R-14/2024 dated 5 March 2026 revises the Standard Pay Package for project staff directly recruited for development projects funded from the Public Sector Development Programme (PSDP). The memorandum states that the revised package takes effect from 1 July 2026 for new and ongoing PSDP projects.
Revised Standard Pay Package For PSDP Project Staff
The memorandum sets out the following revised PPS ranges. Amounts are in Pakistani rupees.
| PPS | Equivalent BPS | Initial Pay | Annual Increment | Maximum Pay |
|---|---|---|---|---|
| PPS-1 | BPS-1 to 4 | 37,800 | 1,140 | 43,500 |
| PPS-2 | BPS-5 to 8 | 47,250 | 1,420 | 54,350 |
| PPS-3 | BPS-9 to 10 | 59,070 | 1,780 | 67,970 |
| PPS-4 | BPS-11 to 13 | 70,880 | 2,130 | 81,530 |
| PPS-5 | BPS-14 to 15 | 94,500 | 2,840 | 108,700 |
| PPS-6 | BPS-16 | 141,750 | 4,260 | 163,050 |
| PPS-7 | BPS-17 | 212,630 | 6,380 | 244,530 |
| PPS-8 | BPS-18 | 295,320 | 8,860 | 339,620 |
| PPS-9 | BPS-19 | 398,130 | 11,950 | 457,880 |
| PPS-10 | BPS-20 | 568,750 | 17,070 | 654,100 |
| PPS-11 | BPS-21 | 735,000 | 22,050 | 845,250 |
| PPS-12 | BPS-22 | 1,050,000 | 31,500 | 1,207,500 |
Effective Date And Application
The revised package is effective from 1 July 2026 in respect of new as well as ongoing PSDP-funded development projects. The memorandum applies to project staff directly recruited for those projects and sets out separate pay-fixation arrangements for fresh appointments and employees already serving.
Pay Fixation For Fresh Appointments
Freshly appointed project staff are to be placed at the initial stage of the relevant PPS scale. The annual increment is 3% of the initial stage, as stated in the memorandum.
Pay Fixation For Existing Project Employees
For existing project employees, pay is to be fixed at the next higher stage in the revised pay package in accordance with the memorandum. The exact stage should be determined from the employee’s existing pay record and the applicable PPS scale.
Annual Increment And Minimum Wage Protection
The memorandum provides for an annual increment after completion of one year of continuous service from the date of appointment, with the same arrangement applying subsequently. It also states that pay is not to be lower than the applicable minimum wage.
Government Employees And Deputation
Government employees may apply for project posts under the package. The memorandum also provides for full-time transfer or deputation arrangements: an employee transferred or deputed on a full-time basis may receive PPS pay plus a deputation allowance of 20%, subject to a maximum of Rs.20,000.
Additional Project Governance And Appointment Conditions
The memorandum contains further implementation conditions beyond the PPS pay table:
- The relevant project-approving fora, such as CDWP or ECNEC, decide the number of project staff and their pay scales.
- Adoption of Standard Pay Package-2026 requires revision/approval of the relevant PC-I by the competent forum.
- Project employees are appointed on contract for an initial period not exceeding two years. The contract may be extended yearly until project completion after performance evaluation.
- No additional facilities beyond the revised Standard Pay Package are admissible to PSDP project employees.
- The package is not admissible to persons re-employed or appointed on contract after retirement; their pay and allowances are governed by the applicable Establishment Division contract policy.
- Retired Government servants who compete openly with private-sector applicants and are selected on merit may receive the package and privileges laid down for the project position under the referenced Establishment Division clarification.
- Officers/officials given additional charge of project posts alongside their regular duties may draw additional-charge allowance at 20% of basic pay, subject to a maximum of Rs.20,000 per month.
- The package ceases when project services/posts transfer to the non-development side or another establishment. Posts moved to the non-development side are to be filled under the regular Basic Pay Scale procedure; project service/pay is not protected for pay, pension or seniority when an employee is selected to a non-development post.
- For PPS-11 and PPS-12 project posts, the memorandum delegates appointment powers to Ministers In-charge and provides for Finance, Establishment and Planning Division representation on the selection committee. For senior PPS-10-and-above positions, partial pay of 10%–20% may be linked to measurable KPIs.
- For project PC-Is costing Rs.100 billion or more, the memorandum provides for Project Director posts on a Special Pay Package with defined benchmarks, subject to inclusion in the PC-I and the decision of ECNEC/approving forum.
Frequently Asked Questions
When does the revised PPS package take effect?
1 July 2026, for new and ongoing PSDP-funded development projects.
How is pay fixed for a new project employee?
At the initial stage of the relevant PPS scale. The annual increment is 3% of the initial stage.
How is pay fixed for existing project staff?
The memorandum provides for fixation at the next higher stage of the revised package.
What deputation allowance is admissible?
For full-time transfer or deputation, the memorandum provides a 20% deputation allowance subject to a maximum of Rs.20,000.
Related EmployeesDesk Resources
For related guidance, see Special Pay Scales and Contractual Positions guidance. For related guidance, see Federal Basic Pay Scales 2026.
Official Finance Division Office Memorandum
The file name includes 05 April 2026, but the document itself is dated 5 March 2026. This article uses the date printed on the Office Memorandum.