News
Wednesday, July 17, 2013
10% ad hoc relief allowance for govt’s civil employees* Allowance will be subject to income tax
ISLAMABAD: The Ministry of Finance (regulation wing) on Tuesday notified the grant of ad hoc relief allowance-2013 at the rate of 10 percent of basic pay to all the civil employees of the federal government as well as the civilians paid from defence estimates, including contingent paid staff and contract employees, those employed against civil posts in basic pay scales on standard terms and conditions of contract appointment.
“The president has been pleased to sanction with effect from July 1, 2013 and till further orders, an ad hoc relief allowance-2013 @ 10 percent of the basic pay to all the civil employees of the federal government as well as the civilians paid from 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,” a notification of the Finance Ministry (regulation wing) issued on Tuesday said.
According to the notification, this ad hoc relief allowance will be subject to income tax, will be admissible during leave and entire period of LPR except during extraordinary leave.
The notification further said that it will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent. It added that it will not be admissible to the employees during the tenure of their posting/deputation abroad, will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and the amount which would have been admissible to them had they not been posted abroad.
The notification further said the term “basic pay” for the purpose of ad hoc relief allowance-2013 will also include the amount of the personal pay granted on account of the annual increments beyond the maximum of the existing pay scales.
It further said that the ad hoc relief allowance 2013 shall be accommodated from within the budgetary allocation for the year 2013-14 by the respective ministries/divisions/departments and no supplementary grant would be given on this account. app
Courtesy www.dailytimes.com.pk