The Federal Government has introduced a new mechanism for the payment of health allowance for medical staff.
The Federal Government has introduced the procedure for the payment of health allowance for doctors (medical and dental), allied specialists, pharmacists, nurses, paramedics, and other healthcare staff.
According to an office memorandum issued by the Ministry of Finance, only those federal employees will be entitled to this allowance who are directly involved in the practical provision of patient treatment and care.
The memorandum refers to the Supreme Court of Pakistan’s decision dated July 4, 2024 (Case No. C.A. 302/2024 to 315/2024, Federation of Pakistan versus Ehsanullah and others), in which a clear definition of health services was provided.
The circular states that with the approval of the Prime Minister, the health allowance in federal government departments will be granted strictly in accordance with the Supreme Court’s decision, and the allowance will be subject to income tax.
The health allowance will be payable during regular leave and pre retirement leave; however, it will not be paid during extraordinary leave. This allowance will not be included in deductions for pension, gratuity, or house rent.
All accounts offices have been directed to complete the process within 15 days and submit a compliance report.
