Federal government revises policy on special pay scales and contract appointments

The federal government has revised its policy governing special pay scales and contractual appointments for civil servants,

ISLAMABAD: The federal government has revised its policy governing special pay scales and contractual appointments for civil servants, bringing positions under Management Pay Scales (MPS), Professional Pay Scales (PPS), Special Professional Pay Scales (SPPS) and other contractual arrangements under a common deputation framework.

The Ministry of Finance has issued an Office Memorandum formally notifying the changes. The revised policy will apply to government-controlled organisations in which the state holds majority ownership and exercises administrative control. The framework covers relevant entities at both the federal and provincial levels.

According to the memorandum reviewed by Minute Mirror, civil servants selected through an open competitive process for positions carrying special pay scales will now be treated as serving on deputation. Their appointments will therefore be governed by the applicable rules and regulations relating to deputation.

The revised framework also expands the scope of the existing policy. MPS, PPS and SPPS positions, along with other contractual posts that were previously outside the policy’s coverage, have now been brought within its ambit.

The memorandum further provides that the term “Government” for the purposes of the policy includes both the Federal Government and Provincial Governments. This means the revised provisions can apply to eligible government-controlled entities across the country, subject to the prescribed conditions relating to ownership and administrative control.

Civil servants appointed against special pay scale positions will also be entitled to allowances, benefits and other facilities admissible under the applicable deputation policy.

A senior Ministry of Finance official told Minute Mirror that the amendment was intended to promote consistency and transparency in the appointment system.

“The objective is to ensure transparency and uniformity. Earlier, contractual appointments were operating outside the standard deputation framework. This amendment closes that gap and brings all special pay scale posts under one rule,” the official said.

The Establishment Division has also clarified the applicability of the revised provisions to federal civil servants.

An Establishment Division official said federal civil servants would be able to serve on special pay scales and contractual positions in eligible organisations not only at the federal level but also in entities operating under provincial governments, provided the government has majority ownership and administrative control.

The official explained that government ownership in this context refers to organisations in which the government holds a majority shareholding and exercises administrative authority.

The amendment follows concerns over differing service conditions for officers appointed to special pay scale and contractual positions. In the past, such appointments were often governed by separate arrangements, resulting in differences in benefits, tenure and other terms of service.

Government sources said the revised policy is intended to standardise service conditions for senior appointments, strengthen accountability through the application of deputation rules and facilitate the movement of civil servants between eligible federal and provincial organisations.

A policy analyst described the move as an attempt to combine competitive recruitment with the established discipline of the civil service structure.

“By treating open-competition selections as deputation, the government is trying to balance merit-based hiring with the discipline of civil service rules. It also prevents parallel cadres with different privileges,” the analyst said.

The decision is expected to affect civil servants serving or seeking appointments in autonomous bodies, public-sector corporations, regulatory authorities and development institutions controlled by federal or provincial governments.

Officials believe the revised framework will also support human-resource planning while clarifying issues relating to officers’ parent departments, including lien and seniority upon completion of deputation.