Last Updated on December 15, 2025 by Galaxy World
The Government of Pakistan, Ministry of Finance, issued a Notification on 02-12-2025 in connection with Clarification Eligibility Health Allowance 2025 to the Federal Government employees. clarifying the eligibility parameters for the grant of Health Allowance to Federal Government employees in light of the Supreme Court of Pakistan’s judgments.
Clarification Eligibility for Health Allowance the Federal Government employees
Notification No: No.15(2)R-2/2021 dated 02nd December 2025
As per the in partial modification of Finance Division’s O.M.No.2(13)R-2/2011-777 dated 06.02.2012 and 04.02.2012 on the above subject, the Health allowance is admissible only to those employees who deliver health-related services. Supreme Court of Pakistan (SCP) at para-6 of its recent judgment dated 04.07.2024 passed in C.A. 302/2024 to C.A. 315/2024 titled Federation of Pakistan vs Ehsan Ul Haq etc. has clearly defined the term “delivering health services” and has held that the term “delivering health services” refers to the provisions of direct clinical care to the patients which involves those who directly receive the patients, manage them and attend to their health issues. This includes roles such as:
Categories of Employees Eligible for Health Allowance
i. Doctors (Medical and Dental)
ii. Allied Specialists
iii. Pharmacists
iv. Nurses
v. Paramedics and support services personnel
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Supreme Court of Pakistan vide aforementioned judgment has further held that anyone directly engaged in patient care, not providing health care services, is not included in the term delivering Health Services.
The Prime Minister of Pakistan has been pleased to approve that in the Federal Government, Health Allowance shall be admissible as per the aforementioned findings of the Supreme Court of Pakistan. The Health Allowance will be admissible subject to the following conditions:
Conditions for Admissibility of Health Allowance
- will be subject to Income Tax.
- will be admissible during leave and the entire period of LPR except during extraordinary leave;
- will not be treated as part of emoluments for calculation of Pension/Gratuity and recovery of House Rent;
- will not be admissible to the employees during the tenure of their posting/deputation abroad; and
- will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them had they not been posted abroad.
- Health Allowance will not be admissible if the employee is posted out from the post to which this allowance is sanctioned.
Rate of Health Allowance
The rate of Health Allowance will be as per Finance Division’s O.M.No.2(13)R-2/2011-777 dated 04.02.2012 and 06.02.2012, read with Finance Division’s O.M. No. 1(3)Imp/2015-630 dated 7th July, 2015.
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CGA shall immediately stop the Health Allowance of employees who do not meet the aforementioned eligibility criteria and may grant them Disparity Reduction Allowance (DRA) subject to the conditions contained in Finance Division O.M.No.14(2)R-3/2025-198 dated 04.07.2025, O.M.No.14(1)R-3/2021-69 dated 23.02.2022, and O.M.No.14(1)R-3/2021-324 dated 08.07.2021.
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CGA shall direct its Accounts Offices to complete the said exercise within 15 days and forward a compliance report. Ministries, Divisions, and Departments shall implement the above-referred criteria in letter and spirit and circulate it to the organizations working under their administrative control.
