The federal government of Pakistan has officially approved a 10% Adhoc Relief Allowance for all federal government employees. This allowance will start from 1st July 2025 and will continue until further orders.
The notification was released by the Ministry of Finance on 4th July 2025. According to this decision, the new allowance applies to:
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Armed Forces Personnel
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Civil Armed Forces
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All Civil Federal Government Employees
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Civilians paid from Defence Estimates
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Contract Employees working on civil posts under standard terms
This 10% increase will be calculated based on the running basic pay, which means the current basic pay as per the latest pay scale (including personal pay after increments beyond maximum limits).
✔ 10% Adhoc Relief Allowance Details:
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Taxable: The 10% allowance will be subject to income tax.
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Leave Benefit: It will be given during ordinary leave, including earned and medical leave.
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No Pension Impact: It will not be added to pension or gratuity.
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Not for LPR: Employees on leave preparatory to retirement (LPR) will not get it, except during extra-ordinary leave.
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Foreign Posting: Employees on posting abroad will get it as per their pay in Pakistan, not foreign allowances.
Read More: 30% Disparity Notification Approved July 2025
The new allowance also covers employees receiving personal pay due to increments after reaching the top of the scale.
✔ No Extra Budget Needed
This allowance will be managed from the already approved 2025-26 budget. No additional funds or supplementary grants will be allowed.
✔ Official Confirmation
The circular was signed by Saadia Kanwal, Section Officer (Implementation), and shared with all major federal departments including:
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Ministry of Science and Technology
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Ministry of Climate Change
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Local Government and Rural Development (LG&RD)
Read More: Civil Servants Amendment Bill 2025: Golden Handshake and Job Security in Pakistan
This update brings financial support for many government workers who were waiting for salary relief amid rising inflation.
✔ What Employees Should Do
The allowance will be automatically added to the salaries starting from July 2025 pay role. This is a welcome move by the government to support its employees and maintain salary parity across departments.