There is big news for federal government employees across the country where the Finance Ministry has issued an official clarification on the rules of Ad Hoc Relief Allowances under BPS 2026 which has cleared the confusion found in all government offices. Thousands of employees working in Islamabad and provincial capitals were worried about the consolidation and adjustment of old allowances after the recent salary revisions. Accountant General Pakistan Revenue (AGPR) and Cabinet Secretariat offices were receiving numerous queries regarding accounting methods, following which these clear instructions have been issued from Islamabad.
What are the instructions given in the new specification?
The government notification has clearly mentioned how the ad-hoc increments received in previous financial years will be integrated into the new basic pay structure. If you are a federal employee falling in the basic pay scales, your department has to calculate the basic pay by deducting the frozen increments before applying the new percentage increase. The notification emphasizes that DDOs of departments should avoid double counting while preparing salaries.
Important points of the issued instructions:
- Strict prohibition on inclusion of old ad hoc relief components in the calculation of existing basic pay unless expressly directed.
- Clear instructions to AGPR and provincial financial institutions to audit current month's pay slips.
- Ensuring protection of current salary of employees so that no employee's take home salary is reduced.
How will it affect government employees?
For a general clerk or civilian officer, this policy update directly determines whether your next paycheck is properly funded. Inflation has put a severe strain on household budgets over the past year, making every rupee of allowance critical to handling YouTube bills and household expenses in big cities like Lahore, Karachi and Peshawar.
What steps should you take now?
Don't wait for your next pay slip to find out if your department has followed the rules correctly. You should immediately download the official circular from the official portal of the Ministry of Finance finance.gov.pk and compare it with the accounts branch of your institution. If you notice any discrepancy in the determination of basic pay or amount of allowance, submit a written request to your concerned DDO before the end of the billing cycle.
What to watch next?
In the coming weeks, keep a close eye on how individual ministries and autonomous bodies adapt to these federal guidelines. The provincial finance departments of Punjab, Sindh, KPK and Balochistan often issue provincial orders to their employees after looking at the federal notifications. Wait for the notifications from the local district accounts offices regarding the arrears distribution schedule.