Overview of Pay Scale Revisions
The Ministry of Finance has issued official Office Memorandums updating the compensation framework for federal staff through the Revised Basic Pay Scales 2026 (BPS-2026). Under this restructuring, former standalone relief payments: specifically the 15 percent Ad-hoc Relief Allowance from 2022 and the 10 percent Ad-hoc Relief Allowance from 2025: have ended as separate entitlements and are now fully incorporated into baseline pay scales.
New Relief and Conveyance Adjustments
In addition to baseline pay consolidation, the government introduced a fresh 7 percent Ad-hoc Relief Allowance-2026 computed on revised running basic pay. This new allowance is subject to applicable income tax and remains payable during authorized leave, Leave Preparatory to Retirement (LPR), and periods of suspension. However, it will not count toward pension computations, gratuity calculations, or house rent determinations.
monthly Conveyance Allowance allocations for personnel spanning BPS-1 to BPS-22 have been increased by 50 percent under established terms and conditions. Officers holding positions in BPS-17 through BPS-22 have also been granted an Executive Allowance.
Scope of Coverage and Implementation Details
These structural adjustments take effect retrospectively from July 1, 2026. The revised pay and allowance rules apply across civil and defence estimates, encompassing federal civil servants, contract employees engaged under standard service terms, contingent paid staff, and officers across grades BPS-1 through BPS-22.
Steps Required for Federal Employees
Staff members who prefer to maintain their existing pay arrangement under the Basic Pay Scales 2022 scheme must formally exercise that choice. To do so, they are required to submit a written and irrevocable selection to their designated Drawing and Dispersing Officer (DDO) or relevant accounts office within a 30-day window. If no explicit request is submitted within this timeframe, transition to the BPS-2026 framework will occur automatically.