
The federal government of Pakistan has issued new and clarified rules for the payment of Health Allowance to medical and healthcare staff, clearly defining who is eligible and who is not.
According to an official Office Memorandum issued by the Ministry of Finance, the allowance will be granted only to federal government employees directly involved in patient treatment and care, while staff performing administrative or non-clinical duties will be excluded.
👩‍⚕️ Who Is Eligible for Health Allowance?
The memorandum states that the following healthcare professionals qualify only if they are directly engaged in patient care:
- Medical and dental doctors
- Allied specialists
- Pharmacists
- Nurses
- Paramedics
- Supporting staff actively involved in patient treatment and care
Employees not providing hands-on healthcare services are not eligible for the allowance.
⚖️ Supreme Court Ruling as Legal Basis
The new rules are based on the Supreme Court of Pakistan’s decision dated July 4, 2024, in the case Federation of Pakistan vs. Ehsan Ullah, which clearly defined the scope of healthcare service delivery.
According to the court:
- Direct healthcare services include patient reception, diagnosis, treatment, nursing care, and addressing medical problems
- Merely being employed in a health department does not automatically qualify an employee for health allowance
With the Prime Minister’s approval, the allowance will now be paid strictly according to this ruling.
đź’° Payment Conditions and Deductions
The circular further clarifies that:
- The health allowance is taxable under income tax laws
- It will be payable during:
- Regular leave
- Leave preparatory to retirement (LPR)
- It will not be paid during extraordinary leave
- The allowance will not be counted for:
- Pension
- Gratuity
- House rent calculations
⏱️ Implementation Timeline
All federal accounts offices have been directed to:
- Complete the verification and payment process within 15 days
- Submit a compliance report to the relevant authorities
The government says this step will ensure uniform implementation, transparency, and compliance with the Supreme Court’s interpretation.