The Ministry of Finance has officially issued a clarification regarding the treatment of Ad-hoc Relief Allowances (ARAs) under BPS-2026. Recently, confusion sparked among federal civil servants following the revision of the Basic Pay Scales (BPS)-2026. Therefore, the government has stepped in to clear the air.
According to the new Office Memorandum, these allowances will remain completely frozen. Furthermore, newly recruited federal employees will only receive these allowances on a notional basis. The Finance Division released these instructions to address numerous queries. These questions emerged right after the initial notification of the revised BPS and allowances, which the government issued last month on July 21, 2026.
Under paragraph 7 of the July notification, the government established a strict baseline. Consequently, all Special Pays, Special Allowances, and any allowances linked to a percentage of pay now stand officially frozen. The government has locked them at their exact level of admissibility as of June 30, 2026.
The Finance Ministry also explained the specific status of the Ad-hoc Relief Allowance-2023. This allowance had already hit a freeze at its admissibility level as of June 30, 2023. Moving forward, it will continue to remain frozen for existing employees.
However, the government has created a clear provision for fresh hires. Employees joining the federal service after the new pay scales take effect will receive this allowance on a notional basis. Specifically, new entrants in BPS-1 to BPS-16 will get a 35% allowance. Meanwhile, officers in BPS-17 to BPS-22 will receive 30%. The government will calculate these percentages strictly on the minimum of the relevant Basic Pay Scales-2022. This change takes effect from July 1, 2026. Ultimately, the allowance will remain frozen at that level until further orders.
Similarly, the Finance Division clarified the treatment of the Ad-hoc Relief Allowance-2024. For existing employees, this allowance will remain frozen at its admissibility level as of June 30, 2026.
Under these revised instructions, existing employees in BPS-1 to BPS-16 will continue receiving this allowance at 25%. In contrast, employees in BPS-17 to BPS-22 will receive a 20% allowance. Both calculations rely directly on the Basic Pay Scales-2022.
Finally, the government outlined the rules for employees appointed after July 1, 2026. These new entrants will receive the same allowance on a notional basis. BPS-1 to BPS-16 employees will secure 25%, while BPS-17 to BPS-22 officers will get 20%. Again, the government will calculate this strictly on the minimum of the relevant Basic Pay Scales-2022. Consequently, this allowance will also remain frozen until further orders.
