Project Allowance Brief

BRIEF
SUBJECT: PROJECT ALLOWANCE
Government of the Punjab introduced Project Allowance for the civil

servants who joined Project / Programme on their selection through competitive
process vide policy letter No.FD.SR-I/9-20/2006 dated 30.11.2006 (Annex-I) with the
following rates:
Basic Pay Scales of the Officers Project Allowance
(% of Project Allowance of PD)
19/20 60
18 50
17 40
Different Projects were categorized vide para-2 whereas terms and conditions for
appointment of officers / officials were described vide para-6 of the policy letter ibid.
Market Based Salaries for the Project Staff directly selected through open
competition and incorporation of Project Allowance in the PC-I was approved vide
para-4-5 of the policy letter of even number dated 07.02.2007 (Annex-II). It was
clarified that the policy for grant of Project Allowance would applicable to the officers
/ officials posted through transfer or internal competitive selection / open market
competition as well as professionals hired from private sector vide policy letter dated
12.10.2007 (Annex-III). The Project Allowance was discontinued to the officers /
officials working in different projects while allowing them to draw pay and such
allowances as admissible to them in their own pay scales plus deputation allowance
and additional charge allowance @ 20% of basic pay vide policy letter dated
02.06.2011 (Annex-IV). Terms and conditions for appointment and performance of
the public sector officials selected open competition were settled vide policy letter
dated 11.11.2011 (Annex-V). The performance of officers / officials working in public
sector companies was subjected to the Key Performance Indicators (KPIs) and
different targets settled by the Board of Directors vide policy letter dated 02.04.2012
(Annex-VI). Guidelines regarding salary packages to public sector officers / officials

working in public sector companies in the Punjab Government, were settled vide
policy letter dated 05.05.2012 (Annex-VII). The terms and conditions for Government
Servants posted in Government owned companies through competitive process
were reviewed for the purpose of rationalization and uniform application across the
board vide policy letter dated 20.05.2014 (Annex-VIII). Such officers’ tenure of
contract in the project was fixed for three years.
Revised rates of Project Allowance for the officers / officials appointed
/ posted in Projects / Programs through competitive process, were fixed vide para-2
of the policy letter dated 21.11.2014 (Annex-IX). General conditions for appointment
of Program / Project Director, his qualification / experience requirement and mode of
selection committee was also described in the policy letter ibid. It was clarified vide
policy letter dated 30.12.2016 (Annex-X) that the Government officers / officials
selected through competitive process on Projects / Programs Posts having
market-based salary would be entitled to market-based packages with immediate
effect whereas those officers / officials appointed / posted through competitive
process would only be entitled to monthly rates of Project Allowance in addition to
their admissible salary. It was further clarified vide policy letter dated 14.06.2017
(Annex-XI) that the policy regarding grant of Project Allowance is applicable only to
the civil servants and the same is not applicable to the employees who are recruited
on contract basis directly against the project posts and are permanent part of the
projects / programs. In a clarification recently issued by the Finance Department vide
policy letter dated 17.04.2018 (Annex-XII) it has been clarified that the policy of
Project Allowance is not applicable to private sector employees and the packages
approved for afore said employees against the post(s) in the public sector projects /
programmes has nothing to do with above mentioned policy because these packages
are governed under Finance Department’s order No.FD-SR-II/1-2/2009, dated
03.07.2015 and the order of even number dated 06.12.2017. All types of programme
/ Project Allowances / Pay Packages / Market Based Salaries and any other special
dispensation, as a part of regular pay, presently admissible in subject entities /
organizations mentioned have been discontinued with effect from July 01, 2018 and
all previous notifications / orders / procedures / guidelines in this behalf including
operation of Review and Rationalization Committee have been obviated vide policy
letter No.FD.SR-I/9-20/2006 dated 27.07.2018 (Annex-XIII).

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BRIEF

SUBJECT: PROJECT ALLOWANCE

Government of the Punjab introduced Project Allowance for the civil

/ officials posted through transfer or internal competitive selection / open market

12.10.2007 (Annex-III). The Project Allowance was discontinued to the officers /

02.06.2011 (Annex-IV). Terms and conditions for appointment and performance of

dated 11.11.2011 (Annex-V). The performance of officers / officials working in public

(Annex-VI). Guidelines regarding salary packages to public sector officers / officials

Servants posted in Government owned companies through competitive process

contract in the project was fixed for three years.

Revised rates of Project Allowance for the officers / officials appointed

of Program / Project Director, his qualification / experience requirement and mode of

selected through competitive process on Projects / Programs Posts having

market-based salary would be entitled to market-based packages with immediate

effect whereas those officers / officials appointed / posted through competitive

process would only be entitled to monthly rates of Project Allowance in addition to

projects / programs. In a clarification recently issued by the Finance Department vide

are governed under Finance Department’s order No.FD-SR-II/1-2/2009, dated

dispensation, as a part of regular pay, presently admissible in subject entities /

all previous notifications / orders / procedures / guidelines in this behalf including

letter No.FD.SR-I/9-20/2006 dated 27.07.2018 (Annex-XIII).

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