In a significant move, the government has notified a 25 percent ad-hoc relief to all federal government employees in Grade 1-16, and a 20 percent ad-hoc relief in Grade 17-22, effective from July 1, 2024. This decision, sanctioned by the President, aims to provide financial relief to government employees and pensioners.
The Finance Division’s Office Memorandum (OM) outlined the details of the ad-hoc relief allowance. It specified that the ad-hoc relief allowance-2024 applies to all federal government employees, including armed forces, civil armed forces, and civilian employees of the federal government. Furthermore, it will apply to civilians paid from Defence estimates, contingent paid staff, and contract employees employed against civil posts in Basic Pay Scales under standard terms and conditions of contract appointment.
Under this notification, the ad-hoc relief allowance for Grade 1-16 employees is set at 25 percent of the running basic pay, while Grade 17-22 employees will receive 20 percent of the running basic pay. Moreover, the ad-hoc relief allowance-2024 will be subject to income tax and will be admissible during leave and the entire period of LPR, except during extraordinary leave.
It’s important to note that the ad-hoc relief allowance will not be considered as part of emoluments for the purpose of calculating pension/gratuity and the recovery of house rent. Additionally, it will not be granted to employees during their posting/deputation abroad and will be admissible upon their repatriation at the rate and amount that would have been granted had they not been posted abroad.
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The notification also clarified that the term “basic pay” for the purpose of ad-hoc relief allowance includes the amount of personal pay granted on account of annual increments beyond the maximum of the existing pay scales. The allocation of the ad-hoc relief allowance for the year 2024-25 is to be accommodated from within the budgetary allocation of the respective ministries/divisions/departments without the provision of supplementary grants.
Furthermore, the President has sanctioned a 15 percent increase in net pension for all civil pensioners of the federal government, including retired armed forces personnel and civil armed forces personnel, effective from July 1, 2024. This increase will also be admissible to pensioners retiring on or after July 1, 2024.
The increase in pension will not be applicable to special additional pension allowed in lieu of pre-retirement orderly allowance and the monetized value of a driver or an orderly. This comprehensive notification is expected to have a positive impact on the financial well-being of federal government employees and pensioners.
