The federal government has approved an increase of up to 50 per cent in the monthly conveyance allowance for employees from Grade 1 to Grade 22.
A special conveyance allowance for government employees with disabilities has also been increased. The monthly allowance for special persons has been raised from Rs6,000 to Rs10,000, effective from 1 July 2026. Under the revised rates, Grade 1 to 4 employees will receive Rs2,678 per month instead of Rs1,785, while Grade 5 to 10 employees will receive Rs2,898 instead of Rs1,932. The employees in Grade 11 to 15 will receive a monthly conveyance allowance of Rs4,284, increased from Rs2,856. For employees above Grade 16, the allowance has been raised from Rs5,000 to Rs7,500.
The 2022 and 2025 ad hoc relief allowances will be discontinued, while a new seven per cent ad hoc relief allowance will be provided under the revised pay scale. The new allowance will be subject to income tax and will not be included in pension or gratuity calculations.
The government has announced a revised basic pay scale and changes to various allowances for government employees, with the new system coming into force from 1 July 2026. The Finance Ministry said employees would have 30 days to choose between the old and new pay scales. Those who do not make a choice within the given period will automatically be placed under the new pay scale.
The government has also revised basic salaries for all grades. Special allowances and special pay will remain frozen at the level of 30 June 2026. An anomaly committee will be formed to address issues related to the implementation of the new pay scale.
A notification has been issued for the Disparity Reduction Allowance for government employees from Grade 1 to Grade 22. The 15 per cent allowance will take effect from July 1, 2026 to reduce salary differences among employees of different departments.
The government has approved an increase in the executive allowance for senior officers. Officers from Grade 17 to Grade 22 will receive the executive allowance according to their basic pay as of 30 June 2026. The allowance will continue under the existing terms and conditions.
The executive allowance will affect the July 2026 salaries of officers above Grade 17. The Prime Minister’s Office, President’s Secretariat and foreign secretary have been informed about the decision.
The new executive allowance and revised pay scale measures will take effect from 1 July 2026. The changes aim to revise government employees’ salaries and allowances under the updated pay structure.
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