ISLAMABAD (Kashmir English): The Federal Government has announced a special allowance for some selected government employees whose monthly income does not exceed the new lowest threshold of Rs40,700 fixed by the Federal Government.
According to media reports, those employees whose monthly income is less than Rs40,700 would get this special allowance to make their monthly income equivalent to the minimum threshold rate fixed by the Federal Government.
The Ministry of Finance is making plans to issue allowances to the federal civil servants and other workers employed under contractual terms in different organizations whose minimum salary threshold is set at Rs40,700.
The extra allowance will start being granted from the commencement of the fiscal year 2026, starting from July 2026, and will continue until otherwise ordered.
However, there will be some terms and conditions attached to this allowance. This allowance will be subject to tax laws regarding income tax.
This allowance can be received while the employee is enjoying normal leave and Leave Preparatory to Retirement (LPR).
Foreign Posting and Deputation
Foreign posting or deputation officers shall not enjoy this special allowance while they remain posted outside the country during their foreign postings or deputations.
But once these federal officers come back to Pakistan following the expiry of their tenure abroad, they shall resume their eligibility to enjoy the special allowance at the previous level.
According to the directive issued by the Ministry of Finance, all relevant ministries, divisions and departments have been asked to bear this extra cost due to the enhanced minimum wage and special allowance in the financial year 2026-27 out of their own budgets.
This decision was taken with regard to ensuring that federal government employees get a minimum salary of Rs40,700 through the special allowance.
