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As to the fairness of the disparity, the Finance Ministry has shed some light on the allowance.Recently, the Finance Ministry of Pakistan cleared the position about the Disparity Allowance after the Federal Cabinet passed it. Also adopted through this budget to take effect from the 1st of March, 2021, is an allowance to help narrow down the salary gap among civil employees in the Federal Government. Here is a breakdown of what this allowance is; and to whom it applies.
Understanding the Disparity Allowance
The Disparity Allowance is fixed at 25 per cent of the basic pay of BPS-2017 for the civil employees in the pay scale of BPS-01 to BPS-19. However, it is specifically for employees who have never claimed any other salary allowances, more than or equal to one hundred per cent of their basic pay or any performance allowance.
Whose Interest is to be Served by the Allowance?
The non-oil scarce allowance helps approximately 296,470 civil employees of the total 6,23,215 civilian employees of the Federal Government. In the previous years, these employees have not been privileged to avail of any higher allowances for their increased salaries and, thus are left far from the other employees who have access to better allowances.
Structuring of the Allowance Rationale
The primary aim of the Disparity Allowance is to narrow the premium of the allowances received by the old generation of allowance recipients and the young generation of the workforce. Various institutions and organisations under the Federal Government have been given allowances ranging between the basic pay and or performance allowance of more than One Hundred per cent hence creating a large gap between the earnings of the federal employee.
CBT Interim Measure before Pay & Pension Commission Recommendations
The Finance Ministry stated that Disparity Allowance is an interim measure. The Pay & Pension Commission has been given the role of assessing the current framework of salary and pension for all the civil servants in the Federal Government of Nigeria, the armed forces’ employees included. The Commission is to come up with proposals before the next budget and the authorities’ goal is to revise the salaries for all workers generally.
Future Steps
The recommendations of the Pay & Pension Commission are still under formulation; nevertheless, its finalization will be very instrumental in achieving the concept of fairness in the pay structure for all its employees at the federal level. Another important aspect is that the measures to increase the pension provision will result from the Commission’s consideration of the existing pension system.
Conclusion
The Disparity Allowance brings the fair treatment of federal employees a step forward by trying to eliminate salary differences. As an expected approaching reform, more setting variety and fairness of salaries and pensions will appear after the issuance of the Pay & Pension Commission recommendations. This integrated move by the Finance Ministry clearly shows that the government is serious about removing all forms of financial imbalance within its employees’ realm.
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