By: Muhammad Ijaz Afridi
The Khyber Pakhtunkhwa Finance Department has issued a notification to increase allowances for government employees. The new allowance rates are effective from July 1, 2025. This decision follows a special meeting of the provincial cabinet held on June 13, 2025.
The allowances that have been increased include the disparity reduction allowance, IT professional allowance, risk allowance, prosecution allowance, utility allowance, technical allowance, judicial allowance, scheduled post allowance, and executive allowance. The Finance Department has issued separate notifications for each of these allowances.
According to the notification, the rate of the disparity reduction allowance has been raised from 15% to 30%, which is calculated on the basic salary of 2017. This allowance is available to all employees from Scale 1 to Grade 19. However, employees receiving 100% or additional allowances, IT professionals, and those receiving the Secretariat Performance Allowance are not eligible.
In a separate announcement, the rate of the IT professional allowance has been increased to 75%, applicable to IT officers based on their basic salary of 2022. The risk allowance has also been increased to 100%, available to employees with a basic salary rate from 2017, specifically for those working in the field from Scale 3 to Scale 16.
Furthermore, the prosecution allowance has been increased to 100%, available to all employees of the Public Prosecution Cadre in the Khyber Pakhtunkhwa Home Department, calculated on the basic salary of 2017. The monthly utility allowance has been fixed at Rs. 18,000, which will be available to Grade 19 officers posted in the Civil Secretariat, Peshawar.
Additionally, the Finance Department has announced an increase in the technical allowance, which will now be based on the basic pay rate of 2022 for engineers working in various sectors. The dishonourable allowance has been raised from 20% to 30% of the running pay, and employees in the Advocate General’s Office are eligible for this allowance.
The scheduled post allowance has been increased to the monthly running pay, applicable to police officers from Grade 17 to Grade 21 posted in the Central Police Office. However, officers receiving the risk allowance, daily allowance, or senior executive allowance will not be eligible for the scheduled post allowance.
Lastly, the executive allowance for officers has been increased to the running pay. Officers posted on deputation who are receiving the senior executive allowance, as well as those in all autonomous and semi-autonomous institutions, will not be eligible for this allowance. All concerned departments have been instructed to implement these notifications according to their available resources.
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