No. FD.PC-2-2/95 Dated the 16th August 1995
Subject: GRANT OF COST OF LIVING ALLOWANCE @ 7%
I am directed to refer to the subject noted above and to state that Governor of the Punjab has been pleased to grant Cost of Living Allowance @ 7% of Basic Pay with effect from 01.06.1995 to all employees in BPS-1 to BPS-22 till further orders.
The above allowance:
- a) will be classified as compensatory allowance and will not be subject to Income Tax.
- b) will be admissible during leave and entire period of leave preparatory to retirement except during extraordinary leave.
- c) will not be treated as part of emoluments for the purpose of calculation of pension and recover of House Rent.
- d) will not be admissible to employees posted/deputed outside the country.
- e) will be admissible during the period of suspension.
- f) will be accommodated within the budgetary allocation for the year 1995-96 by the respective department and no supplementary grants will be given on this account.