As a result of the Annual Increment 2023, which goes into effect on December 1st, 2023, all government employees will see a salary increase that is solely tied to this annual increment.”
The hike, which applies to all general cadre personnel, is only for the 2023 annual increment, with all other allowances staying locked at their current levels.
While allowances related to running basic salary may increase in some departments, frozen allowances will not increase this year.
This decision represents a selected compensation increase only due to the yearly increment, which will affect government employees beginning December 1st, 2023.
By Notification No. 14(1) R-3/2021 dated 03-03-2021, the Finance Division approved Disparity Reduction Allowance 2021 (DRA-2021) at 25% of the running base salary as of March 1, 2021. It also froze the same provision, effective March 1, 2021.
Following the employees’ battle, the Federal Government gave DRA 2022 at 15% of the running basic salary and also frozen it with effect from March 1, 2022, via Notification F.No.14 (1) R-3/2021-69 dated February 23, 2022.
Also Read: Government Issues Notification of Revised Rates Payment of Fee to Government Employees
The Federal Government released the Notification of Revised Pay Scales 2022, which will take effect on July 1, 2023. The Finance Division also issued Adhoc Relief Allowance 2022 at 15% on the existing base salary of prior amended pay scales in the same Notification.
The same allowance was likewise frozen by the Federal Government in Notification No. F.No.1 (2) Imp/2022-283 dated 01-07-2022.
Finance Division issued Notification No. F. No.1 (1) Imp/2023-226 on 04-07-2023 about Adhoc Relief Allowance 2023 (ARA-2023) at 35% for BPS-01 to BPS-16 employees and 30% for BPS-17 to BPS-22 workers.
If we check at the Notification, we can see that this allowance is 35% and 30% of Basic Pay as of June 30, 2023. If the compensation increases later on, it will not be increased.
On the salary as of 30-06-2023, the Finance Division said that. It made no mention of the running basic wage or anything else. If this is the case, it will rise in tandem with salary increases.
The Finance Division, on the other hand, has submitted a clarification letter to the Ministry of Defense on the frozen Adhoc Relief Allowance 2023 on pay as of June 30, 2023.
As a result of the preceding debate, we conclude that no allowance is included in the running basic salary. As a result, just one increase will take effect on December 1, 2023.
Who Will Not Receive the 2023 Annual Increment?
- Employees who were appointed on or after June 1st (after Noon) will not receive the yearly increase in 2023.
- Employees promoted/upgraded/granted time scale or re-appointed by the Department after 1st June 2023 will not get an annual increase in 2023 unless they exercise the option to fix the salary on 2nd December after receiving an annual increment in the prior pay scale.
- Due to disciplinary incidents, certain workers may face the consequence of having their yearly increments halted.
