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Disparity Reduction Allowance
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What is Disparity Reduction Allowance?
The Disparity Reduction Allowance (DRA) is a financial benefit that the government of Pakistan has provided to their civil servants since 2021. The reason to introduce this allowance was the protests for equality by some employees who were not receiving the special allowances while other employees from different departments but within the same pay scale received them, often more than 100% of their basic salary.
Features of Disparity Reduction Allowance
- • Taxable
- • Not included in pension or gratuity calculations
- • Remains frozen at the amount drawn on the first day of eligibility
- • Available during leaves, suspension, and after repatriation from foreign postings (conditions applied)
The percentages were revised in 2022 and 2025. To know the revised policies of Disparity Reduction Allowance 2025 Pakistan, read further.
Disparity Reduction Allowance 2025 Notification
The Disparity Reduction Allowance 2025 notification was officially announced during the federal budget speech for the fiscal year 2025–26. According to the notification, the federal government employees will be receiving an allowance that will be equal to 30% of their basic salary via the DRA that will be effective from 1st July 2025.
Disparity Reduction Allowance Sindh Government
The Disparity Reduction Allowance Sindh government record is different from the federal government. The Sindh government did not announce any new Disparity Reduction Allowance in the 2025 budget and continues to rely on previous adjustments made through Revised Pay Scales 2022. Since 1st July 2022, the Sindh government has been providing 34.35% DRA for BPS-01 to BPS-16, while 31.7% for BPS-17 and above employees.
Disparity Allowance Salary Increase
Following is the pattern of Disparity Allowance salary increase since 2021 with an example:
- • +25% in 2021: If your basic salary was Rs. 50,000, then you would be receiving an allowance of Rs. 12,500.
- • +15% in 2022: Additional Rs. 7,500 (15%) with Rs. 12,500 = total Rs. 20,000
- • +30% in 2025: After adding a further Rs. 15,000 (30%) to Rs. 20,000, you will be receiving a total of Rs. 35,000.
This pattern results in a total increment of 70% for employees who have been receiving the DRA since 2021. Other than that, from 1st July 2025, every government employee will receive a 10% Ad-hoc Relief Allowance (ARA) whether or not they are eligible for the DRA.
Who Is Eligible for Disparity Allowance?
The Disparity Reduction Allowance eligibility criteria for the government employees defined by the Ministry of Finance of Pakistan are listed below:
- • BPS-1 to BPS-19 Federal government employees
- • Must not be receiving any special or performance allowances equal to or above 100% of basic pay
- • Federal Secretariat, attached departments, and subordinate offices employees
- • Must not be an employee on deputation or posted abroad