On this page 9 sections
- The New Rates: BPS-1 to BPS-22
- What Changed in 2026
- What Each Grade Gets in Pakistan
- Do the Provinces Pay the Same Rates?
- Is Conveyance Allowance Taxable in Pakistan?
- Is It Paid During Leave and Vacations?
- Special Conveyance Allowance
- What If Your Payslip Still Shows the Old Rate?
- Frequently Asked Questions
Conveyance allowance in Pakistan is the fixed monthly payment a government employee gets for travelling to and from work. It is not a percentage of basic pay. It is a fixed amount, set by your pay scale. From 1 July 2026, it went up by 50% for every grade from BPS-1 to BPS-22.
Here are the new rates, what changed, what each grade gets, what the provinces pay, whether it is taxable, and what happens during leave and vacations.
The New Rates: BPS-1 to BPS-22#
| Pay scale | Old rate | New rate | Increase |
|---|---|---|---|
| BPS 1 to 4 | Rs 1,785 | Rs 2,678 | +Rs 893 |
| BPS 5 to 10 | Rs 1,932 | Rs 2,898 | +Rs 966 |
| BPS 11 to 15 | Rs 2,856 | Rs 4,284 | +Rs 1,428 |
| BPS 16 and above | Rs 5,000 | Rs 7,500 | +Rs 2,500 |
The rates are monthly, and they are the same for every employee in the band. A BPS-16 officer and a BPS-22 officer both get Rs 7,500. A BPS-11 clerk and a BPS-15 assistant both get Rs 4,284. There is no separate rate for BPS-17 to BPS-22.
What Changed in 2026#
The Finance Division raised conveyance allowance by 50% for all federal civil servants from BPS-1 to BPS-22. The notification is Office Memorandum No. F.1(2)IMP/2026, dated 21 July 2026, and it applies from 1 July 2026. The revised allowance is paid on the existing terms and conditions. The official notification is published at finance.gov.pk.
It is part of the BPS-2026 package. The same notification introduced the revised Basic Pay Scales 2026, which merged the Ad-hoc Relief Allowances of 2022 (15%) and 2025 (10%) into basic pay, and added ARA-2026 at 7% of running basic pay. Our BPS pay scale chart 2026 gives the full chart for BPS-1 to BPS-22.
The increase is retrospective. The notification applies from 1 July 2026, even though it was issued on 21 July 2026. The arrears for July are paid with the revised salary.
What Each Grade Gets in Pakistan#
BPS 1 to 4: Rs 2,678 per month. This covers Naib Qasid, Chowkidar, Mali, Sweeper and other support staff. The increase is Rs 893 a month, or Rs 10,716 a year.
BPS 5 to 10: Rs 2,898 per month. This covers Junior Clerk, Driver, Constable and similar posts. The increase is Rs 966 a month, or Rs 11,592 a year.
BPS 11 to 15: Rs 4,284 per month. This covers Senior Clerk, Assistant and Stenotypist. The increase is Rs 1,428 a month, or Rs 17,136 a year. Our BPS-11 salary guide and our BPS-14 salary guide both include the new Rs 4,284 figure in their worked examples.
BPS 16 and above: Rs 7,500 per month. This covers every officer from BPS-16 to BPS-22, including BPS-17 officers. The increase is Rs 2,500 a month, or Rs 30,000 a year. Our BPS-17 salary guide includes the new Rs 7,500 figure in its worked example.
Do the Provinces Pay the Same Rates?#
Yes, for Sindh and Balochistan, and the same 50% increase. The Sindh Finance Department revised conveyance allowance by 50% for BPS-1 to BPS-22 by Office Memorandum No. FD(SR-I)08(01)/2026-27 dated 23 July 2026, effective from 1 July 2026, with the same four rates. The Balochistan Finance Department did the same by notification No. FD(R-I)V-1/2026/3090-3210 dated 22 July 2026, effective from 1 July 2026, with the same four rates.
Punjab and Khyber Pakhtunkhwa issue their own notifications. The rates are the same in practice, because the provinces follow the federal increase, but check your own province’s notification if your payslip does not show the new rate. The figures in this guide are the federal rates.
Is Conveyance Allowance Taxable in Pakistan?#
Yes. Conveyance allowance received in cash is fully taxable under the head “Salary”. Section 12 of the Income Tax Ordinance, 2001 defines salary to include any allowance, including a travel allowance. The only exception is an allowance solely expended in the performance of the employee’s duties, and conveyance allowance does not fall under it.
The exemption in the Second Schedule does not cover it. Clause 39 of Part I of the Second Schedule exempts a special allowance or benefit, not being entertainment or conveyance allowance, granted to meet expenses wholly and necessarily incurred in the performance of duties. Conveyance allowance is specifically named as excluded. There is no exemption available for conveyance allowance: it must be added to the taxable salary income of the employee.
Your employer deducts the tax. Under Section 149 of the Income Tax Ordinance, 2001, every employer paying salary must deduct income tax at source at the time of payment. The conveyance allowance is included in that calculation. Some older guides mention a small historical exemption of Rs 2,000 to Rs 5,000 a month, but those figures conflict with each other and with the current position, which is full taxability. The first Rs 600,000 of annual salary is exempt for all individuals, so a low-paid employee may pay no tax at all.
Is It Paid During Leave and Vacations?#
The notification pays the revised allowance on the existing terms and conditions. It does not change when the allowance is paid and when it is not. Departments have deducted conveyance allowance during leave periods, and that deduction has been challenged.
The vacation question is contested. Teachers in Khyber Pakhtunkhwa have challenged deductions of conveyance allowance during summer and winter vacations in the Service Tribunal. Their argument is that vacations are government-announced holidays, not leave applied for under the Revised Leave Rules, 1981, so the allowance is fully payable during vacations. The departments’ position is that the allowance is not allowed for the leave period. There is no single settled answer, so check with your accounts office and keep your payslips.
Keep your payslips. If your conveyance allowance is deducted during a vacation, compare your payslip for the working month with the vacation month. If the deduction looks wrong, raise it in writing with your department first, and keep the diary number.
Special Conveyance Allowance#
The budget for 2026-27 also proposed raising the Special Conveyance Allowance from Rs 6,000 to Rs 10,000 per month. That is a proposal, not a notified rate. It is not in the 21 July 2026 notification, so do not expect Rs 10,000 on your payslip until a separate notification is issued. This guide will be updated if it is notified.
What If Your Payslip Still Shows the Old Rate?#
Check your July 2026 payslip first. The new rates apply from 1 July 2026, so the July payslip should show the new figure: Rs 2,678, Rs 2,898, Rs 4,284 or Rs 7,500, depending on your grade. If it shows the old figure, the arrears should appear in a later month.
Raise it with your accounts office. Quote the notification number, Office Memorandum No. F.1(2)IMP/2026 dated 21 July 2026, and your province’s notification if you are a provincial employee. Ask in writing, and keep the diary number.
Check the annual figure. At the new rates, conveyance allowance is worth Rs 32,136 a year for BPS 1 to 4, Rs 34,776 for BPS 5 to 10, Rs 51,408 for BPS 11 to 15, and Rs 90,000 for BPS 16 and above. If your yearly total is lower, something is wrong.
Frequently Asked Questions#
Is conveyance allowance taxable?
Yes. Conveyance allowance received in cash is fully taxable under the head “Salary”. Section 12 of the Income Tax Ordinance, 2001 defines salary to include any allowance, including a travel allowance. The exemption in Clause 39 of Part I of the Second Schedule specifically excludes conveyance allowance. Your employer deducts the tax at source under Section 149. The first Rs 600,000 of annual salary is exempt for all individuals, so a low-paid employee may pay no tax at all.
How much is it for BPS-1 to 22?
From 1 July 2026: BPS 1 to 4 get Rs 2,678 per month, BPS 5 to 10 get Rs 2,898, BPS 11 to 15 get Rs 4,284, and BPS 16 and above, up to BPS-22, get Rs 7,500. These are the federal rates, notified by the Finance Division on 21 July 2026. Sindh and Balochistan notified the same rates with the same effective date.
When did the new rates start?
1 July 2026. The Finance Division’s Office Memorandum No. F.1(2)IMP/2026 is dated 21 July 2026 but applies from 1 July 2026, so the increase is retrospective and the arrears for July are paid with the revised salary. The allowance is paid on the existing terms and conditions.
Do provinces pay the same rates?
Sindh and Balochistan notified the same 50% increase and the same four rates, both effective from 1 July 2026. Punjab and Khyber Pakhtunkhwa issue their own notifications, and the rates are the same in practice because the provinces follow the federal increase. Check your own province’s notification if your payslip does not show the new rate.
Is it paid during leave and vacations?
The notification pays the revised allowance on the existing terms and conditions, and it does not settle the question. Departments have deducted conveyance allowance during leave periods. Teachers have challenged deductions during summer and winter vacations in the Service Tribunal, arguing that vacations are government-announced holidays, not leave. There is no single settled answer, so check with your accounts office and keep your payslips.
