Government of Pakistan, Ministry of Finance issued a Notification on 18-07-2025 in connection with Grant Compensatory Allowance 2025 to Federal Govt Employees. The details are as follows:

Grant Compensatory Allowance 2025 to Federal Govt Employees

As per the Notification, the undersigned is directed to refer to the subject noted above and to state that the Federal Government has granted Disparity Reduction Allowance (D.R.A.) (D.R.A-2025) @ 30% of the running basic pay as on 30-06-2022 to those offices which are already in receipt of that allowance. D.R.A. is accounted for the calculations of Compensatory Allowance to Federal Government employees who are serving on a deputation basis as per terms and conditions prescribed in Finance Division’s O.M.No.F.3(14)R-3/2009-477, dated 29-11-2023, i.e., the amount of D.R.A. will be reduced from the amount of Compensatory Allowance. 2. It is requested that offices which are in receipt of D.R.A. and have officers who are drawing Compensatory Allowance on 1st July, 2025, the amount of Compensatory Allowance of those officers may be reduced by the amount of D.R.A-2025 @ 30% w.e.f. 1st July, 2025. 3. Ministries/Divisions are requested to circulate these instructions to Departments/Autonomous/Semi-Autonomous/Corporate Bodies, etc., under their administrative control, for compliance. The copy of this O.M. is being endorsed to the Controller General of Accounts and AGPR for the implementation of this decision. 4. Webmaster of Finance Division is requested to upload this O.M. on Finance Division’s Website, please