ISLAMABAD: The government on Friday notified grant of compensatory allowance for federal government employees.
Finance Division issued an office memorandum which stated that federal government has granted Disparity Reduction Allowance (DRA-2025) at the rate of 30 percent of the running basic pay as on 30-06-2022 to those offices which are already in receipt of that allowance.
DRA is accounted for the calculations of compensatory allowance to federal government employees who are serving on deputation basis as per terms and conditions prescribed in Finance Division's OMNoF.3(14)R-3/2009-477, dated 29-11-2023, i.e. the amount of DRA will be reduced from the amount of Compensatory Allowance.
It is requested that offices which are in receipt of DRA and they have officers who are drawing Compensatory Allowance on 1st July, 2025, the amount of Compensatory Allowance of those officers may be reduced by the amount of DRA-2025 at the rate of 30 per cent w.e.f. 1st July, 2025.
Ministries/Divisions are requested to circulate these instructions to departments/autonomous/semi-autonomous/corporate bodies etc under their administrative control, for compliance. The copy of this OM is being endorsed to Controller General of Accounts and AGPR for implementation of this decision,” the memorandum noted.
Copyright Business Recorder, 2025
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