DRA or Grant of Compensatory Allowance in Federal Government? notification

An Office Memorandum from the Government of Pakistan, dated July 18th, 2025 (though the image shows "18th July, 2025" and the current date is July 18, 2025, it's safe to assume this is a newly issued document or a forward-dated one).
Here's a detailed breakdown of its content:
Subject: Grant of Compensatory Allowance in Federal Government
Key Points:
* Disparity Reduction Allowance (D.R.A.)-2025: The Federal Government has granted a Disparity Reduction Allowance (D.R.A.)-2025.
* Amount: This allowance is 30% of the running basic pay as of June 30, 2022.
* Eligibility: It's granted to offices that are already in receipt of that allowance. This implies a continuation or formalization of a previous allowance.
* Impact on Compensatory Allowance for Deputationists: For Federal Government employees serving on deputation, the D.R.A. will be reduced from the amount of Compensatory Allowance. This is based on terms and conditions prescribed in the Finance Division's O.M.No.F.3(14)R-3/2009-477, dated November 29, 2023.
* Implementation for Offices in Receipt of D.R.A. and Compensatory Allowance:
* Offices that are currently receiving D.R.A. and have officers drawing Compensatory Allowance as of July 1, 2025, will see the amount of Compensatory Allowance for those officers reduced by the amount of D.R.A.-2025 (30% of running basic pay) with effect from July 1, 2025. This suggests a netting-off mechanism where the D.R.A. benefit will offset the Compensatory Allowance.
* Circulation and Compliance:
* Ministries/Divisions, Departments/Autonomous/Semi-Autonomous/Corporate Bodies, etc., are requested to circulate these instructions under their administrative control for compliance.
* A copy of this Office Memorandum is being endorsed to the Controller General of Accounts and AGPR for implementation of this decision.
In essence, this memorandum clarifies how the newly granted Disparity Reduction Allowance (D.R.A.)-2025 interacts with the existing Compensatory Allowance, particularly for federal government employees, including those on deputation. It mandates that the D.R.A. will effectively reduce the Compensatory Allowance for eligible individuals and directs widespread circulation for compliance.

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