Govt announces allowance policy for employees after BPS-2026 implementation

Zahid Mehmood August 7, 2026 Business
Govt announces status of Ad Hoc Relief Allowances

The federal government has issued new policy guidelines for Ad Hoc Relief Allowances 2023 and 2024 following the implementation of the Basic Pay Scale (BPS) 2026. According to the Ministry of Finance, special pay, special allowances, and other benefits linked to basic pay for federal government employees will remain frozen at the level applicable on June 30, 2026.

The decision is part of the government’s revised pay policy, under which existing allowance structures will continue at their current rates until further notice.

The Ministry further stated that the Ad Hoc Relief Allowance 2023 has been frozen at the level of June 30, 2023. However, from July 2026, newly appointed federal government employees will also be eligible for this allowance. The allowance will be calculated on the minimum basic pay of the Basic Pay Scale 2022.

Under this policy, employees in grades 1 to 16 will receive 35% of the relevant basic pay, while employees in grades 17 to 22 will receive 30% of the Ad Hoc Relief Allowance 2023. This allowance will remain frozen at the same rate until further notice.

The Ministry of Finance also announced that the Ad Hoc Relief Allowance 2024 will continue to be calculated on the basis of the Basic Pay Scale 2022. Employees in grades 1 to 16 will receive 25% of the basic pay, while employees in grades 17 to 22 will receive 20% of the allowance. This allowance will also remain frozen at the level of June 30, 2026.

Effective from July 1, 2026, newly appointed federal government employees will also be entitled to the Ad Hoc Relief Allowance 2024, calculated according to the minimum basic pay of the Basic Pay Scale 2022. For new employees, the allowance rate will be 25% for grades 1 to 16 and 20% for grades 17 to 22, and it will remain frozen at the same level until further notice.

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