Govt to Deduct Two Days’ Salary of Govt Employees for PM’s Flood Relief Fund

The federal government has notified the deduction of two days’ salary of federal government employees for the prime minister’s flood relief fund. However, it also stated that the deduction would be optional or voluntary in nature. and if anyone not willing to contribute may inform within few days from the date of the circular to Accountant General Pakistan Revenues (AGPR).

The Finance Division issued a notification stating that the flooding caused by the monsoon rains since mid-June has caused significant human and livestock casualties as well as widespread damage to private homes and public infrastructure. This has worsened the humanitarian situation.

As a collective national effort to meet the challenge of providing relief and rehabilitation to the affected population, the Finance Division created a fund titled “Prime Minister’s Flood Relief Fund.” It further proposed the deduction of salary (gross pay and allowances before any deductions) from government employees for approval by the Federal Cabinet.
The Cabinet considered the proposal and approved the deduction as under:

i. Two days’ salary of the officers and officials working in the Ministries/Divisions/Departments/Authorities/Corporations/Companies/Financial Institutions/Commission, etc., working under the Federal Government.
ii. Two days’ salary of the officers/officials of Civil Armed/Civilian Officers and Officials paid out of Defence Estimates.
iii. Two days’ salary of the officers/officials holding posts on contract as well as a lump sum pay package including the “M” Scale, “MP” and “SPPS” Scales and officers/officials locally recruited in our Foreign Missions

Further, ministries and divisions are instructed to approach state-run organizations under them, such as banks, financial institutions, regulatory authorities, telecom companies, insurance companies, and other similar organizations for contributions. Therefore, since the earned salary of government employees is private property, the above-mentioned deduction would be optional/voluntary in nature, and anyone not willing to contribute may inform the AGPR Islamabad and respective pre-audit, within days from the date of the circular.

The amount of contribution shall not be included in the emoluments of the officers/officials concerned for the calculation of income tax and deduction of the recovery of the house rent charges.

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