I. Background: HRQC 85 of 27.7.26 about Federal Govt all Grades Conveyance Allowance increased by 50% in trail, blue, italic and double Line

II. Updated Commentary 

1. Further to KQU 4006 of 22.7.26, an important matter, we would inform you about Revision of basic pay scales and allowances of civil servants of the federal government 2026 (Attachment 86.1) in ensuing paragraph, with emphasis ours in bold & Underline for quick reading.

2. The Federal Government has approved revision of Basic Pay Scales & Allowances with effect from 1.7.26 for the civil employees of Federal Government, paid out of civil estimates and defense estimates as detailed in the following paragraphs.

A. Revision of Basis Pay Scales: The PBS 2026 have been introduced by merging Ad-hoc Relief Allowance-22 and Ad-hoc Relief Allowance 2025. The PBS 2026 shall replace PBS 2022 with effect from 1.7.26 as given at the end of this Office Memorandum.

B. Fixation of Pay of the existing employees

i. The basic pay of an employee in service on 3.6.26 shall be fixed in the PBS 2026 on point to point basis i.e. at the stage corresponding to that occupied by him/her above the minimum of PBS 2022;

ii. In case of Personal Pay being drawn by an employee as part of his/her basic pay beyond the maximum of his/her pay scale on 3-6-26, he/she shall continue to draw such pay in the PBS 2026 at the revised rates.

C. Annual Increment: Annual increment shall continue to be admissible, subject to the existing conditions, on 1 Dec each year.

D. Ad-hoc allowances: Upon introduction of BPS-2026 the following Ad-hoc Relief Allowances granted w.e.f. 1.7.22 and 1.7.25 shall cease to exist with effect from 1.7.26:

E. Ad-hoc Relief Allowance-26

1. An Ad-hoc Relief Allowance-26 @ 7% of the running basic pay of BPS-2026 shall be allowed to the civil employees of the Federal Government as well as civilians paid out of Defence estimates including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment with effect from 1.7.26 till further orders;

2. The Ad-hoc Relief Allowance will be subject to Income Tax;

3. The Ad-hoc Relief Allowance will be admissible during leave and entire period of L.P.R. except during extra ordinary leave;

4. The Ad-hoc Relief Allowance will not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent;

5. The Ad-hoc Relief Allowance will not be admissible to the employees during the tenure of their posting/deputation abroad;

6. The Ad-hoc Relief Allowance 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;

7. The Ad-hoc Relief Allowance will be admissible during the period of suspension;

8. The term “Basic Pay” will also include the amount of Personal Pay granted on account of annual increment (s) beyond the maximum of the existing pay scales.

F. Special Pay and Allowances: All the Special Pays, Special Allowances or the Allowances admissible as percentage of pay (excluding those which are capped by fixing maximum limit) including House Rent Allowance and the Allowance/Special Allowance equal to one month basic pay, granted to Federal Government employees irrespective of his/her posting in Ministry/Division/Department/Office etc. including civil employees in BPS-1 to 22 of Judiciary shall stand frozen at the level of its admissibility as on 3-6-26.

G. Options:

1. The Ministry/Division/Department/Office to which an employee belongs and/or on whose pay roll he/she is borne shall obtain an irrevocable option in writing from such employees within 30 days commencing from the date of issue of this Office Memorandum and communicate it to the concerned Accounts Office/DDO, as the case may be, either to continue to draw salary in the Scheme of BPS-2022 or in the Scheme of PBS 2026 as specified in this Office Memorandum.

2. An existing employee, as aforesaid, who does not exercise and communicate his/her option within the specified time limit, shall be deemed to have opted for the Scheme of PBS 2026.

3. All the existing rules/orders on the subject shall be considered to have been modified to the extent indicated above. All the existing rules/orders, not so modified, shall continue to be in force under this scheme

H. Anomalies: An Anomaly Committee shall be set up in the Finance Division (Regulations Wing) to resolve the anomalies, if any, arising out in the implementation of the PBS 2026.

I. Existing Pay Scales-2022 and Revised Pay Scales-

III. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com.