CoL allowance increased for state employees

The present cost of living allowance given to public sector employees including those in public services, provincial public service and armed forces would be revised following a cabinet decision.

The cost of living allowance of Rs. 2500 paid upto 30.6.2008 would be increased by Rs. 1000 with effect from 01.07.2008 in respect of employees drawing a monthly salary of less than Rs.22, 935.

Accordingly the revised cost of living allowance for the above employees will be Rs. 3500 while the revised cost of living allowance for the employees drawing an initial monthly salary of Rs. 22,935 or above will be Rs. 2875.

Daily paid employees will be paid a daily cost of living allowance of Rs. 116.66 with effect from 01.07.2008.

The employees of the corporations' statutory boards, fully owned Government companies which do not pay a variable cost of living or similar allowance linked to the cost of living index and paid under the Management Services Circular No.30 will be paid a cost of living allowance.
The Ministry of public administration and Department of Management services issued the circulars regarding this on Wednesday.