In a recent development, the Punjab government has announced a significant step to improve the financial well-being of civil servants and contract employees working in civil posts. A 30% ad-hoc relief allowance will now be added to their basic salaries, providing them with a much-needed increase in their earnings.
The Finance Department has issued an official letter, stating that this allowance will be implemented starting from 1st July 2023 until further notice. However, it is important to note a few key details regarding the ad-hoc allowance:
Subject to Income Tax:
The allowance will be subject to income tax regulations, ensuring that the appropriate taxes are deducted from the recipients’ earnings.
Admissibility during Leave:
The ad-hoc allowance will be granted to employees even during their leave, as well as throughout the entire period of Leave Preparatory to Retirement (LPR), with the exception of extraordinary leave.
Not Considered for Pension/Gratuity Calculation:
It is important to clarify that the ad-hoc allowance will not be included in the calculation of pension or gratuity. Additionally, it will not be used for house rent recovery purposes.
Exclusion during Posting/Deputation Abroad:
Employees serving during a posting or deputation abroad will not be eligible to receive the ad-hoc allowance during their tenure in foreign countries.
Admissibility upon Repatriation:
However, employees will be entitled to the ad-hoc allowance upon their repatriation from a posting or deputation abroad. They will receive the same rate and amount they would have received if they had not been posted overseas.
It’s worth noting that the allocation for the above-mentioned ad-hoc relief allowance-2023 will be accommodated within the budget for the fiscal year 2023-2024 by the respective departments. No supplementary grant will be provided specifically for this purpose.
The Punjab government’s decision to grant this 30% ad-hoc relief allowance reflects their commitment to the welfare of civil servants and contract employees. This increase in income will undoubtedly help improve their financial stability and enhance their motivation to serve the public with utmost dedication and efficiency.