Letter Regarding Disparity Reduction Allowance Punjab Govt Employees

Government of the Punjab Finance Department has issued a letter on 24-03-2021 in connection with Disparity Reduction Allowance Punjab Govt Employees has been uploaded for the information of the employees of the province of Punjab. The details are as under:


Disparity Reduction Allowance Punjab Govt


Federal Government issued notification for reduction of disparities in the pay of its employees in different Miniseries, Attached Departments and other organizations, as well as with Provincial Governments employees, under the title  of Disparity Reduction Allowance DRA  2021 @ 25% of the basic pay of Basic Pay Scales, 2017 (Annex-A) Salient features of the Notification are as under:


DRA 2021


  • The said allowance Is admissible to only those employees who have not been allowed additional allowance(S) equal to more than 100% of the basic pay (whether frozen or not) or performance allowance.
  • The allowance is effective from 01.03.2021.
  • A Negative list of the organizations/departments, whose employees will not be entitled to Disparity Reduction Allowance, has been given.


  1. After issuance of the above-mentioned notification, employees of the different provincial departments started demanding the subject allowance, whereas, it was only for Federal Government Employees. Lately, different segments of provincial employees are resorting to protest to press for fulfillment of their demand. The Punjab Government in the recent past had granted various financial benefits and incentives to its different departments which had created a disparity between pay/allowances of the provincial and federal employees. The present demand of the Provincial Employees involves huge financial implications and it would have an adverse effect on the provincial finances as the current financial year is nearing its close.
  2. In view of the above, the matter is being submitted for the perusal of the Chief Minister, please.


Special thanks to Mr. S. Adnan Haider, Mr. Zia Ullah Malik,  for sending the copy of the letter regarding DRA 2021 @ 25% for Punjab employees.



Letter Regarding Disparity Reduction Allowance Punjab Govt Employees



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