BPS Allowances 2026 — House Rent, Medical & Conveyance for Govt Employees (Pakistan)
Updated on July 23, 2026
bps allowances 2026
Your basic pay is only part of a government salary in Pakistan — allowances often add up to more than the basic itself. This guide explains all the main BPS allowances 2026 for federal and provincial government employees: House Rent, Medical, Conveyance, Ad-hoc Relief (ARA-2026) and the Disparity Reduction Allowance — what each one is, how it is calculated, and what changed in the 2026-27 budget.
What Makes Up a Government Salary?
A government employee’s monthly pay is: Basic Pay + Allowances − Deductions. The basic pay comes from the grade-wise chart in our BPS Pay Scale 2026 guide; the allowances below are added on top, and deductions (income tax, GP Fund, benevolent fund) are subtracted to give your net take-home.
Allowance
Who Gets It
How It’s Determined
House Rent Allowance (HRA)
Those not given official accommodation
A percentage of basic pay, higher in big cities
Medical Allowance
All employees
Fixed monthly amount by grade band
Conveyance Allowance
Most employees (grade-based)
Fixed rate by grade band (raised ~50% in 2026-27)
Ad-hoc Relief Allowance (ARA-2026)
All employees
7% of revised basic pay
Disparity Reduction Allowance (DRA)
Eligible grades only
Percentage of basic pay (eligibility rules apply)
Special / Departmental
Specific posts
Executive, secretariat, field, hardship, etc.
House Rent Allowance (HRA)
HRA is paid to employees who are not provided official (government) accommodation. It is calculated as a percentage of basic pay and is generally higher in big cities. As a rough guide, larger cities (Islamabad, Karachi, Lahore, Rawalpindi) attract a higher rate than medium and smaller cities. If you are allotted a government house or hostel, HRA is not paid (house rent is deducted instead). Always confirm the exact percentage for your city category from the current Finance Division notification.
Medical Allowance
Medical Allowance is a fixed monthly amount paid to all employees, set by grade band (one rate for lower BPS grades and a higher rate for BPS-16 and above). Some departments instead reimburse actual medical bills for hospitalisation. It is a standing allowance, so it appears on your pay slip every month regardless of whether you use it.
Conveyance Allowance (Increased in 2026-27)
Conveyance Allowance helps cover travel to and from work and is a fixed rate by grade band. In the 2026-27 budget it was increased by about 50% (new rate ≈ old rate × 1.5). Employees who are provided an official vehicle usually do not receive this allowance. Exact rupee rates vary by grade and duty station.
Ad-hoc Relief Allowance (ARA-2026)
To offset inflation, the government adds Ad-hoc Relief Allowances in the budget. In 2026-27 a fresh 7% ARA-2026 was granted on the revised basic pay. Importantly, the earlier ARA-2022 and ARA-2025 were merged (absorbed) into the basic pay, which is why the Revised Basic Pay Scale 2026 figures are noticeably higher — see the full chart in our BPS Pay Scale 2026 guide.
Disparity Reduction Allowance (DRA)
The DRA was introduced to reduce the pay gap between employees of the same grade in different departments. It is paid as a percentage of basic pay to eligible employees only — those already receiving special allowances at or above a set threshold are generally not eligible. Check your department’s notification to see whether the DRA applies to your post.
Other Common Allowances
Executive / Secretariat Allowance — for officers posted in ministries and executive offices.
Special Pay / Charge Allowance — for holding an additional charge or special duty.
Field / Hardship Allowance — for postings in remote or difficult areas.
Dress / Washing / Uniform Allowance — for staff required to wear a uniform.
Overtime / Special Duty Allowance — where applicable to the post.
How Allowances Combine With Basic Pay
To estimate your gross salary: take your basic pay for the grade, add HRA (if not in a government house), medical, conveyance, the 7% ARA-2026 and DRA (if eligible) plus any special allowance, then subtract income tax and fund deductions. For the basic pay figures, use our BPS Pay Scale 2026 grade-wise chart, or try the BPS Salary Calculator in our Tools menu for a quick estimate.
Frequently Asked Questions
Are allowances the same in every province?
The structure is similar across the federal government and Punjab, Sindh, KP and Balochistan, but exact rates and some allowances differ by province and are notified separately.
Do I get House Rent Allowance if I live in a government house?
No. If you are allotted official accommodation, HRA is not paid and house rent is instead deducted from your salary as per rules.
What allowance increase came in the 2026-27 budget?
A 7% Ad-hoc Relief Allowance (ARA-2026) on the revised basic pay, a merger of ARA-2022 and ARA-2025 into basic pay, and about a 50% increase in the conveyance allowance.
Is medical allowance taxable?
Medical allowance up to a limit is generally exempt from income tax under prevailing rules; confirm the current limit with the latest FBR/Finance notification.
Disclaimer: FutureRozgar is an independent information website. Allowance types, rates and eligibility are notified by the Finance Division and provincial finance departments and are revised in the annual budget — always confirm exact current figures from the official notification before relying on them.
