Update about 20% Special Allowance to Federal Government Employees

On 30-09-2013 during the hearing of case about 20% Special Relief Allowance for all Federal Government Employees in Islamabad High Court (IHC), The Secretary Finance did not produce the Notification of 20% Special Relief Allowance as was ordered by the IHC in the previous hearing. IHC issued a show cause notice to the Secretary Finance and the next date of hearing is 09-10-2013.

Islamabad High Court (IHC) on Wednesday 25 September 2013 directed the Finance Ministry to issue the notification with regard to increase in the special allowance of 20% on running basic pay of all the federal government employees by September 30. The court also directed the officials of the ministry to submit the copy of the notification before it in the next date of hearing as it was granted to the officials of the ministries and divisions. A single member bench of the IHC comprising Justice Shaukat Aziz Siddiqui issued the directives after hearing the contempt petition filed by the federal employees of various departments, seeking the implementation of the court orders regarding raise of 20 percent in the basic salaries as being availed by the ministries’ employees. 

Earlier in March 2013, Finance Division Regulation Wing, Islamabad has granted 20% Special Allowance to the employees working in the Federal Ministries/Divisions vide Notification No. F.10 (2) R-3/2012 dated 6th March 2013 while special allowance was not admissible to the employees of President’s Secretariat, Prime Minister’s Secretariat, Wafaqi Mohtsib’s Secretariat, Federal Tax Ombudsman’s Secretariat, National Assembly Secretariat and Senate Secretariat, and all such other entries who are already being paying any additional allowance and other facilities. Ex-PM Raja Pervez Asharf had announced 20% Special Allowance to the Secretariat and Ministries and Divisions Employees and the Employees of Attached Departments, Semi Govt and Corporations were deprived of this allowance. 

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After petition of federal employees, on June 18, 2013 IHC had ordered for 20% increase in the basic pay of all federal employees with effect from 1st March 2013.

Update (23-10-2013): Finance Secretary said in court that he has cleared a summary of 20 percent salary raise for federal government employees who were passed up earlier this year. The summary will be approved by Prime Minister when he will come back after an official tour of the USA. It is expected that notification of a 20 percent pay increase will be issued in the next few days, as promised by Finance Secretary in court.

Update (04-02-2014): The Islamabad High Court has again issued the orders on 4th February 2014 in connection with the “20% Special Relief Allowance to all the Federal Govt Employees” and the deadline has been given till 28-02-2014. Some points of this decision are as under:

An official in attendant submit that the summary with regard to Special 20% Allowance was submitted to the Honorable Prime Minister for approval and there were certain quarries, however, after answering the same the summary has been again submitted to the Honorable PM for taking a final decision about the matter. Further, submit that they are not in a position to tell any specific date for the approval of the summary, however, it is expected that the same will be returned within three weeks. Officials in attendant are directed to submit follow up letter in terms of the order passed by this court so that this issue may be settled as the employees of different departments are lurking in the arena of uncertainty since long and approaching the court time and again. It is expected that the authority shall take the final decision by the end of this month i.e. 28-02-2014.

Update (26-03-2015): Honorable Division Bench of IHC has directed to re-list the case in 2nd week of May, 2015 for the final decision.