The federal government has extended the Rs2,500 monthly M Phil allowance to employees holding qualifications declared equivalent to an M Phil degree by the Higher Education Commission (HEC).
The Finance Division announced the decision through an office memorandum issued on September 14, 2026. The extension will take effect from July 17, 2026, subject to employees providing an HEC equivalence certificate.
Previously, the allowance was limited to employees possessing an HEC-recognized M Phil degree. Under the latest decision, employees with an equivalent qualification formally recognized by HEC will also qualify for the benefit.
The Finance Division said the allowance is payable at 25% of the existing PhD allowance, bringing the monthly amount to Rs2,500. The payment will remain subject to the conditions outlined in the Finance Division’s office memorandum issued on July 1, 2016.
The latest decision changes the earlier position on HEC-equivalent qualifications. In November 2025, the Finance Division had clarified that its policy specifically covered M Phil degrees, while HEC equivalence was primarily considered for recruitment and university admission purposes. As a result, employees holding equivalent qualifications were not eligible for the allowance.
The revised policy now explicitly includes employees who possess or acquire an HEC-recognized equivalent qualification, provided they submit the required equivalence certificate.
The M Phil allowance was originally introduced with effect from July 1, 2016, for federal employees holding an HEC-recognized M Phil degree. However, certain restrictions continue to apply.
Employees already receiving the Rs10,000 monthly PhD allowance will not be eligible for the M Phil allowance. Similarly, employees who had received advance increments for possessing or acquiring an M Phil degree before December 1, 2001, cannot claim the allowance.
The Finance Division has circulated the latest memorandum to federal ministries and divisions, including the Establishment, Education, Finance, Information Technology, Communications, Energy, Climate Change and other government departments.
The decision will bring employees with formally HEC-equivalent qualifications within the M Phil allowance framework, with eligibility effective from July 17, 2026.
