Govt approves Rs2,500 monthly M.Phil allowance for federal employees

The Finance Division issued an Office Memorandum on September 14, 2026, clarifying that employees possessing or acquiring an HEC-recognised equivalent qualification will also be

ISLAMABAD: The federal government has approved a Rs2,500 monthly M.Phil allowance for eligible federal government employees, extending the benefit to holders of equivalent degrees recognised by the Higher Education Commission (HEC).

The Finance Division issued an Office Memorandum on September 14, 2026, clarifying that employees possessing or acquiring an HEC-recognised equivalent qualification will also be entitled to the allowance, subject to submission of an HEC equivalence certificate.

According to the memorandum, the allowance will be admissible at 25 per cent of the existing Ph.D. allowance, amounting to Rs2,500 per month, with the benefit applicable from July 17, 2026.

The decision follows an earlier Finance Division clarification issued in November 2025 regarding the implementation of the policy governing higher-qualification allowances. The latest memorandum seeks to remove uncertainty over the eligibility of employees holding degrees considered equivalent to M.Phil by the HEC.

The notification has been circulated among federal ministries and divisions for implementation. Employees holding recognised equivalent qualifications, including relevant MS degrees, will be required to provide the prescribed HEC equivalence certificate to claim the benefit.

The move is expected to benefit a large number of highly qualified employees working in federal ministries, divisions and attached departments who had faced uncertainty over eligibility for the allowance because their degrees carried titles other than M.Phil.

The M.Phil allowance is linked to the Ph.D. allowance, which currently stands at Rs10,000 per month. The latest clarification effectively confirms the extension of the Rs2,500 benefit to eligible holders of HEC-recognised equivalent degrees.

The Finance Division’s decision is being viewed as a clarification of the government’s policy on higher-qualification allowances and is expected to provide greater uniformity in its implementation across federal departments.