Government of the Punjab Finance Department has already issued Notification No. FD.SR-I/1-11/2011 dated 9th March 2013 in connection with clarification of Medical Allowance on Promotion or Upgradation to BPS-16 for the Punjab Govt employees.
A question has arisen about admissibility of Medical Allowance @15% of basic pay to those who have been promoted/up-graded from BPS-15 to BPS-16 after 30th June 2010.
Finance Department has examined the case and observed that officers in BPS-16 and above were allowed Medical Allowance @15% of the existing of the basic pay of the pay scales 2008 with effect from 01-07-2010. Thereafter it was clarified vide circular letter dated 12-01-2011 that on promotion from lower to higher scale after 30-06-2010, the Medical Allowance alongwith Adhoc Allowance-2010 which allowed on existing basic pay as on 30-06-2010.
It is further clarified that vide U.M of the dated 02-05-2012, if an employee of BPS-15 is promoted to BPS-16 after 30-06-2010 he would be entitled to Medical Allowance @15% of his basic pay as on 30-06-2010 and the rate of Medical Allowance would be frozen at that level.
Moreover Finance Division vide memo dated 17th April 2012 about Clarification of Medical Allowance, has clarified that officers in BPS-16 and above may be allowed Medical Allowance @15% of their basic pay of Basic Pay Scale-2008 subject to a minimum Rs.1000/- per month.
In view of the above the employees promoted/upgraded from BPS-15 to BPS-16 after 30-06-2010 are entitled to Medical Allowance @15% of their basic pay of the Basic Pay Scale 2008 as on 30-06-2010 subject to a minimum Rs. 1000/- and the rate of Medical Allowance would be frozen at that level.
Note: Clarification of Minimum Medical Allowance @1200/- per month for BPS-16 is expected also soon.