The federal government has introduced a procedure for the payment of Health Allowance to doctors (medical and dental), allied specialists, pharmacists, nurses, paramedics, and other healthcare staff.
However, employees who are not directly involved in patient care will not be eligible for this allowance.
The government has issued new rules clarifying eligibility for the health allowance.
According to the office memorandum issued by the Ministry of Finance, only federal employees providing direct, practical services in patient treatment and care will qualify for the allowance.
The memorandum references the Supreme Court of Pakistan ruling dated July 4, 2024 (Case No. C.A. 302/2024 to 315/2024, Federation of Pakistan vs. Ehsan Ullah, etc.), which clearly defined healthcare service delivery.
The court defined direct healthcare services as those involving patient reception, treatment, care, and addressing medical issues.
Eligible personnel include doctors (medical and dental), allied specialists, pharmacists, nurses, paramedics, and supporting staff involved in patient care.
Those not engaged in direct patient care are excluded from the allowance.
The circular states that, with the approval of the Prime Minister, health allowance in federal government departments will be provided strictly according to the Supreme Court’s decision.
The allowance will be subject to income tax.
It will be payable during regular leave and leave before retirement (LPR), but not during extraordinary leave. Additionally, the allowance will not count toward pension, gratuity, or house rent deductions.
All accounts offices have been instructed to complete the process within 15 days and submit a compliance report.