The federal government has informed its employees that two days’ worth of their pay would be withheld for the prime minister’s flood relief fund. In addition, it was specified that the deduction would be elective or voluntary. and if somebody is unwilling to contribute, they should notify the Accountant General of Pakistan Revenues within a few days after the date of the circular.
The floods brought on by the monsoon rains since mid-June has resulted in severe human and livestock losses as well as extensive damage to private residences and public infrastructure, according to a notification from the Finance Division. In turn, this has made the humanitarian situation worse.
The Finance Division established a fund called the “Prime Minister’s Flood Relief Fund” as part of a coordinated national effort to address the task of delivering relief and rehabilitation to the impacted populace. It also suggested that government employees’ salaries (gross pay and benefits before any deductions) be withheld for Federal Cabinet approval.
The proposal was examined by the Cabinet, which authorised the deduction as follows:
- 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.
- Two days’ salary of the officers/officials of Civil Armed/Civilian Officers and Officials paid out of Defence Estimates.
- 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
Additionally, ministries and divisions are told to ask for donations from state-run businesses that fall under their domain, including banks, financial institutions, regulatory agencies, telecom companies, insurance companies, and other businesses of a like nature. Due to the fact that government employees’ earned salaries are private property, the aforementioned deduction is optional and voluntary, and anyone who does not choose to participate may notify AGPR Islamabad and the appropriate pre-audit within days of the date of the circular.
For the purposes of calculating income tax and deducting the recovery of house rent charges, the contribution amount shall not be counted as part of the officers’ or officials’ compensation.
