The federal government on Tuesday notified a 50 percent increase in conveyance allowance for civil servants from BPS-1 to BPS-22, providing additional relief to employees under the revised pay package for fiscal year 2026-27.
According to an Office Memorandum issued by the Ministry of Finance, the revised conveyance allowance will take effect from July 1, 2026, and will be paid on the existing terms and conditions. Under the revised rates, employees in BPS-1 to BPS-4 will receive Rs2,678 per month, up from Rs1,785.
Employees in BPS-5 to BPS-10 will now receive Rs2,898, compared with the previous Rs1,932. For employees in BPS-11 to BPS-15, the allowance has been increased from Rs2,856 to Rs4,284 per month.
Officials in BPS-16 and above, including officers up to BPS-22, will receive Rs7,500 per month, against the earlier Rs5,000.
The notification follows the federal government’s broader decision to introduce Basic Pay Scales (BPS)-2026, which merged the Ad-hoc Relief Allowances granted in 2022 and 2025 into the basic pay structure with effect from July 1, 2026.
Under the same pay package, the government has also announced a 7 percent Ad-hoc Relief Allowance-2026 on the running basic pay under the new BPS-2026 for eligible federal civil employees and civilians paid from defence estimates. The allowance will remain subject to income tax and will not count towards pension or gratuity calculations.
The Finance Ministry has directed all federal ministries, divisions and departments to implement the revised conveyance allowance with retrospective effect from July 1, 2026, as part of the government’s salary revision package for the current fiscal year.
