July 1, 2003	Tuesday	Rabi-us-Sani 30, 1424

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ISLAMABAD, June 30: The government notified on Monday a 15 per cent increase in the basic pay and pensions of federal government employees and armed forces and civil armed forces personnel with effect from July 1, 2003.

Two separate notifications to this effect were issued on Monday by the ministry of finance on behalf of the president.

The 15 per cent increase would be called special relief allowance. This would be applicable to basic pay per month to all the civil employees in BPS 1-22 of the federal government as well as the civilians paid from Defence Estimates and to all the armed forces and civil armed forces personnel.

On inquiry, a finance ministry official explained that increase would be calculated on the basis of running basic pay and not the initial basic pay, which meant that even BPS-1 and 2 officials would get a rise of Rs400-500 per month in their salaries.

The allowance would be subject to income tax but will be admissible during leave and entire period of leave prior to retirement (LPR) except during extraordinary leave.

The special relief allowance will not be treated as part of emoluments for the purpose of calculation of pension and gratuity and recovery of house rent. It will also not be admissible to the employees during the tenure of their postings abroad.

All the ministries and divisions have been directed to accommodate this 15 per cent relief within their budgetary allocations for the year 2003-04 as no supplementary grants would be given on this account.

In case of pensions, the 15 per cent increase would be admissible on pension being drawn. This increase will be admissible also on family pension granted under the pension-cum- gratuity scheme 1954, Liberalised Pension Rules, 1977, on pensions sanctioned under the central civil services (extraordinary pension) rules as well as on the compassionate allowance.

If the gross pension sanctioned by the federal government is shared with any other government in accordance with the rules, the amount of the increase in pension will be apportioned between the federal government and the other government concerned on proportionate basis.

This increase in pension is a special relief and shall not be reckoned for the purpose of calculation of commutation or gratuity.

In case of re-employed pensioners, the increase in pension shall not be admissible to them during the period of their re-employment.

The benefits of increase in pension will also be admissible to those civil pensioners of the federal government who are residing abroad, except those residing in India and Bangladesh, who retired on or after Aug 15, 1947, and are not entitled to, or are not in receipt of pension increase under the British government’s pension (increases) act. However, the payment will be made at the applicable rate of exchange.