ISLAMABAD: President of Pakistan has approved a 10% Ad-Hoc Relief Allowance for federal government employees, which will be effective from July 1, 2025. The Ministry of Finance formally issued the notification on July 4, confirming the implementation of this allowance as announced in the federal budget.
The allowance will apply to employees in Basic Pay Scales, including Armed Forces personnel, Civil Armed Forces, civilians paid from defence estimates, civil employees of the federal government, and contract employees working against civil posts on standard terms.
As per the notification, the 10% Ad-Hoc Relief Allowance 2025 will be calculated on the running basic pay and will:
-
Be subject to income tax
-
Be admissible during leave and leave preparatory to retirement (LPR), except during extraordinary leave
-
Not be treated as part of emoluments for pension, gratuity, or house rent calculations
-
Not be paid during foreign postings or deputations
-
Be admissible upon return from foreign posting at the rate that would have applied if the employee had remained in Pakistan
The term “basic pay” for this allowance includes any annual increments that exceed the existing pay scale ceilings.
— ALSO READ —
LDA increases revenue by 44% to record Rs27 billion in FY2024-25
The Ministry of Finance clarified that the allowance will be managed within the current budget allocations for fiscal year 2025-26, and no supplementary grants will be provided to ministries, divisions, or departments.
