The federal government has officially notified a 50 percent increase in the Conveyance Allowance for civil servants from BPS-1 to BPS-22, effective July 1, 2026.
According to an Office Memorandum issued by the Ministry of Finance, the revised allowance will apply under the existing terms and conditions to all eligible federal employees.
The revised monthly Conveyance Allowance has been fixed as follows:
| Basic Pay Scale | Previous Rate | Revised Rate |
|---|---|---|
| BPS-1 to BPS-4 | Rs. 1,785 | Rs. 2,678 |
| BPS-5 to BPS-10 | Rs. 1,932 | Rs. 2,898 |
| BPS-11 to BPS-15 | Rs. 2,856 | Rs. 4,284 |
| BPS-16 and Above | Rs. 5,000 | Rs. 7,500 |
The increase forms part of the federal government’s revised pay package announced in the Budget 2026-27 and is aimed at partially offsetting higher commuting costs for government employees.
The notification states that the enhanced allowance will take effect retrospectively from July 1, 2026.
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