The government of Pakistan has announced a major relief package for its employees in the Budget 2025-26. This year, the focus is on reducing salary inequality among different departments and helping employees to overcome the inflation. The federal government has introduced a Disparity Reduction Allowance (DRA) of up to 30%, along with a 10% Adhoc Relief Allowance (ARA) for all government servants.
Disparity Reduction Allowance (DRA) 30% in Budget 2025-26
The Disparity Reduction Allowance (DRA) is a special allowance introduced to reduce the salary gap between employees of different departments who work in the same grade but receive different salary packages. This step was first taken in 2021, when the government provided DRA @ 25%. Later, in 2022, another DRA @ 15% was given. Now in 2025, the government has again offered DRA @ 30% for all government employees.
Key Announcements in Budget 2025-26
- 30% DRA for employees in BPS-01 to BPS-16 (only for those who are not already receiving special allowances of 100% or more).
- 15% DRA for officers in BPS-17 to BPS-22, subject to eligibility.
Also Read: 30% Disparity Notification Approved July 2025
- 10% Adhoc Relief Allowance for all employees from BPS-01 to BPS-22.
- All allowances will be applicable from 1st July 2025.
Who Is Eligible for DRA 2025?
Not every government employee will receive the full 30% DRA. The government has clarified that this allowance is only for:
- Those who are not receiving any special allowance equal to or above 100% of their basic pay.
- Employees working in departments where there is salary disparity compared to other departments.
For example, if a Grade-16 officer in the Ministry of Finance is getting a higher salary than a Grade-16 officer in another ministry, then the latter will receive the DRA to reduce the difference.
Real-Life Example of Salary Increase with DRA
- Let’s say an employee in BPS-14 has a basic salary of Rs. 50,000.
- He will get 30% DRA = Rs. 15,000
- He will also get 10% ARA = Rs. 5,000
- Total New Salary = Rs. 70,000 (Basic + DRA + ARA)
Also Read: 7% Pension Increase July 2025: Federal Government Pensioners in Pakistan
This shows a total increase of Rs. 20,000, or 40% of the basic salary, which is a significant relief in the current inflation.
Why DRA Is Important
DRA is a crucial step to ensure fairness in government salaries. Many departments like FBR, Judiciary, and others receive additional allowances and perks. Other employees in the same grades were feeling left out. With this allowance, the government wants to create equality among different departments.
Conclusion:
The Budget 2025-26 has brought much-needed relief to millions of government employees. The announcement of DRA @ 30% and ARA @ 10% shows the government’s commitment to supporting its workforce. This is expected to reduce financial stress, boost employee morale, and ensure balance in the pay system.