The government has frozen all special pays, special allowances or the allowances admissible as percentage of pay to the federal government/Federal Board of Revenue (FBR)/Police employees irrespective of their posting in Ministry/Division/ Department/FBR at the level of its admissibility as on June 30, 2011.
According to notification by Ministry of Finance, "all the special pays, special allowances or allowances admissible as percentage of pay (excluding those which are capped by fixing minimum limit) including house rent allowance and allowances/special allowances equal to one month basic pay granted to any federal government/Federal Board of Revenue (FBR)/Police employees irrespective of his/her posting in Ministry/Division/ Department/FBR including civil employees in BPS -22 of judiciary shall stand frozen at the level of its admissibility as on June 30, 2011."
The ad hoc relief allowances granted up to July 1, 2009 shall stand discontinued with affect from July 1, 2011 after mergence in basic pay scales 2008 so as to introduce basic pay scales 2011. The ad-hoc relief allowance 2011 of 15 per cent of the running basic pay scales of 2008 to all civil servants, and civilians paid out of defense estimates including contingent paid staff and contract employees against civil posts in basic pay scales on standard terms and conditions of contract appointment shall be allowed with effect from July 1, 2011 till further order and shall stand frozen at the same level.
The ad-hoc relief allowance shall be subject to income tax, will be allowed during leave and LPR. The ad-hoc relief allowance will not be treated as part of the emoluments for the purpose of calculation of pension, gratuity and recovery of house rent. The ad-hoc relief allowance will be admissible to the employees on their repatriation from posting-deputation abroad at the rate and amount which would be admissible to them had they not been posted abroad.
Medical Allowance: Medical allowance admissible to civil servants in BPS 16 to BPS 22 at the rate of 15 per cent of the existing pay scales in Basic Pay Scales-2008 shall continue to be admissible at the frozen level of its admissibility as on June 30, 2011. All the new entrants in BPS 16 to BPS 22 will be allowed medical allowance at the rate of 15 per cent of minimum of relevant Basic Pay Scales-2008 on notional basis with effect from July 1, 2011, till further order and shall stand frozen at the same level.