Updates on Approval Disparity Reduction Allowance DRA for Federal Employees in 2025
What is Disparity Allowance?
Disparity Reduction Allowance DRA is a special financial assistant given to those federal government employees of Pakistan whose salaries were significantly lower than the employees of other different departments of autonomous bodies, Ministries, Divisions. The aim of the Government of Pakistan to sanction Disparity Reduction Allowance DRA was to reduce the gap of salaries amongst different government sector’s employees. This was also with the aim to promote financial fairness with the Federal Government’s Departments.
Background of Disparity Reduction Allowance:
In 2021, the Government of Pakistan introduced, a 25% Disparity Reduction Allowance for the employees of selected Federal Government Departments who were getting single basic pay and no other special allowance. Later, some departments received 15% or 20% under different schemes. Some departments of Federal Government including different Ministries, Divisions, Secretariat and other departments were already getting different special allowance equal to Basic Pay. Therefore, to reduce the disparity amongst the employees, Disparity Reduction Allowance DRA was introduced.
Latest Update: 30% Disparity Allowance Approved
According to different credible news sources, the Ministry of Finance has approved a 30% Disparity Allowance for federal employees as part of the upcoming 2025-26 budget. The said allowance is expected to be implemented from July 2025, the start of the new fiscal year. But the final decision will be taken during upcoming Budget of 2025-26. Before, final decision, in Budget 2025-26, no confirmation can be made, as Finance Division has not issued directives to the Ministries / Divisions and is pending till the decision of Budget 2025-26.
Who Will Benefit from This Allowance?
If finally, Disparity Reduction Allowance is announced in the Budget 2026, the said allowance will be granted to the employees working under Federal Ministries, Divisions,
and attached departments. The employees of departments who are not currently receiving any allowance equal to or above their basic pay and already have received some portion of Disparity Reduction Allowance in past.
Who Will Not Be Eligible?
According to DAWN news, the employees of the following Federal Government Departments may not be eligible for this new allowance:
Employees of Federal Government Departments who are already receiving special or performance based allowances such as Federal Board of Revenue, National Accountability Burueau and different other departments and Ministries. Also employees whose salaries already include high-scale or equal-to-basic allowances
According to newspaper sources, a high level committee was assigned to assess salaries disparities accros departments of Federal Government and the committee recommended Implementation of a 30% Disparity Allowance across eligible federal sectors and its Inclusion in the 2025-26 budget
Expected Impact of the Decision
- Relief for low-income government employees amid rising inflation
- Better harmony and reduced dissatisfaction among federal employees
- Positive employee morale and improved retention in public service
What About Provincial Employees?
Currently, Disparity Reduction Allowance applies only to federal employees. Whether provincial governments will follow a similar policy depends on their respective budgets and financial planning.
Final Thoughts
The approval of a 30% Disparity Allowance is a welcome move for federal employees who have long demanded salary equality. However, actual implementation, scope clarification, and final budget approval are still pending.
We Want to Hear From You!
- Do you think this allowance will be implemented as promised?
- Will it truly reduce the pay gap among public servants?
- Share your thoughts in the comments section.
Stay connected with allaboutfact.com for timely updates, pension guides, and important government employee news. Don’t forget to subscribe to our YouTube channel and follow our Facebook page.
Click Below for Youtube Video
