Government of Khyber Pakhtunkhwa, Finance Department has issued a letter for the Chief Minister in connection with KP Disparity Reduction Allowance Summary. The details are as under:
KP Disparity Reduction Allowance Summary
The Federal Government issued a notification F.No. 14(1)R-3/2021-90 for the reduction of disparities in wages among those Federal Government employees who have not been allowed any additional allowances greater than or equal to 100% of basic pay. Whether frozen or otherwise (Annex-A). The new Disparity Reduction Allowance DRA 2021 @ 25% is admissible for all civil employees in BPS 1-19 of the Federal Government, with the exception of employees of departments and organizations included in a negative list (Annex-A), who draw additional allowances greater than or equal to 100% of basic pay, whether frozen or otherwise.
- Following the issuance of the above-mentioned notification by the Federal Government, employees of various Provincial Government departments and organizations have held discussions on a similar allowance.
- The Provincial Government has been empathetic to the needs of both its employees and its citizens, with the flagship Sehat Card universal health coverage program standing out as a recent example, as well as allowances and upgradations for several cadres and employee groups.
- Introducing a Disparity Reduction Allowance @ 25% of Revised Basic Pay Scales 2017 would have a huge annual Financial implication of around Rs. 20 Billion. The resulting adverse effect on the provincial finances and potential impact on the development budget may be taken into consideration while deliberating upon the proposed allowance.
- The Chief Minister, Khyber Pakhtunkhwa is requested to kindly allow us to place the disparity reduction allowance before Cabinet for consideration and approval.
