Special Allowance Announced for Low-Paid Government Employees: Who Is Eligible and How Much Will They Receive?
ISLAMABAD: The federal government has decided to provide a special allowance to low-paid government employees to bring their monthly salaries up to the officially prescribed minimum level.
For the current fiscal year, the government has set the minimum monthly wage at Rs40,700. Federal employees whose salaries are below this threshold will receive a special allowance to make up the difference.
The facility will also be available to employees working on a contractual basis in various government institutions, provided their monthly salary is below Rs40,700.
According to available details, the special allowance will be effective from July 2026 and will continue until further orders. However, certain conditions have been attached to its payment.
The allowance will be subject to applicable income tax rules. Employees will remain entitled to the allowance during ordinary leave as well as leave preparatory to retirement (LPR).
However, employees on extraordinary leave will not receive the allowance for the duration of such leave. Similarly, federal employees posted abroad or serving on deputation will not be eligible for the allowance during their foreign posting or deputation period.
Once employees complete their foreign posting or deputation and return to Pakistan, payment of the allowance will resume, provided they continue to meet the eligibility criteria.
The Ministry of Finance has directed all relevant ministries, divisions and departments to meet the additional expenditure arising from the minimum salary adjustment and payment of the special allowance from their existing budgets during fiscal year 2026-27.
Thus, the main beneficiaries of the special allowance will be government employees whose existing monthly salaries are below the government’s prescribed minimum threshold of Rs40,700.
