Claim the M.Phil Allowance for an Equivalent Degree: Rs 2,500 a Month for Pakistan's Federal Employees
Federal employees in Pakistan with an HEC recognised M.Phil-equivalent degree can claim the Rs 2,500 M.Phil Allowance from 17 July 2026. See rules and steps.
Federal government employees in Pakistan who hold a degree that the Higher Education Commission (HEC) recognises as equivalent to an M.Phil can now get the M.Phil Allowance of Rs 2,500 a month. The Finance Division extended it in an Office Memorandum dated 14 September 2026, with effect from 17 July 2026. Before this, only an actual M.Phil degree counted.
We read the Finance Division's memorandum No. 3(6)IMP/2024-0003 on finance.gov.pk, along with the three older orders it builds on, from 2016, 2017 and 2025. Together they show a nine year rule being reversed. If you were refused the allowance because your degree was "equivalent" rather than titled M.Phil, this is the change you were waiting for.
Equivalent degrees now qualify for the M.Phil Allowance from 17 July 2026
The 14 September memorandum says the M.Phil Allowance "may also be extended to those who acquire/possess an equivalent degree recognized by the Higher Education Commission". The amount stays Rs 2,500 a month. The start date is 17 July 2026, and the old conditions still apply.
That last part matters. The memorandum does not create a new allowance. It widens who can get the existing one, set up by the Finance Division's memorandum of 1 July 2016.
Here is how the rule has moved:
| Order | Date | What it said |
|---|---|---|
| F.No.3(6)Imp/2016-336 | 1 July 2016 | M.Phil Allowance of Rs 2,500 a month, 25% of the Ph.D Allowance, for HEC recognised M.Phil holders |
| F.No.3(6)Imp/2016-Vol-II-4 | 4 January 2017 | Other degrees, HEC equivalent or not, are not admissible |
| No.3(6)IMP/2024 | 24 November 2025 | Repeated the 2017 position: an officer with an M.Phil-equivalent degree is not eligible |
| No.3(6)IMP/2024-0003 | 14 September 2026 | Extended the allowance to HEC recognised equivalent degrees from 17 July 2026 |
The November 2025 memorandum came out of one officer's case at the Ministry of Foreign Affairs. It said the HEC's equivalence declarations were "for the purpose of job recruitments or admission in universities", not for allowances. The 2026 memorandum now refers back to that letter and changes the answer.
Who can claim it and who cannot
The allowance is for federal government employees. The memorandum went to every federal ministry and division, the Accountant General Pakistan Revenues (AGPR) offices, the Military Accountant General and the Controller General of Accounts. It does not by itself apply to provincial employees.
The 2016 conditions still apply. You cannot get the M.Phil Allowance if:
- You already get the Ph.D Allowance of Rs 10,000 a month.
- You already received advance increments for an M.Phil degree held or acquired before 1 December 2001, under the Finance Division's 1983 order.
The Ph.D rate is set in a separate 7 July 2015 memorandum. It fixed the Ph.D or D.Sc. Allowance at Rs 10,000 a month for all holders, whatever their posting or subject. That is why the M.Phil amount, at 25 percent, is Rs 2,500.
Provincial employees should watch for their own finance department's order. Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan set their own allowances, and a federal memorandum is only a model for them.
Which degrees count as equivalent
The memorandum says "an equivalent degree recognized by the Higher Education Commission". It does not list the degrees. So the test is whether HEC treats your degree as equivalent to an M.Phil.
The common case is an 18 year MS degree from a Pakistani university, which many universities now award instead of an M.Phil. A foreign master's degree is another. For a foreign degree, you will usually need an HEC equivalence letter. HEC's process to get equivalence for a foreign degree is online.
Our advice: do not argue the point yourself. Attach HEC's attestation or equivalence letter to your claim and let the accounts office decide on paper.
How to claim the allowance in five steps
The memorandum does not set out a claim procedure. In practice, federal allowances are claimed through your office's Drawing and Disbursing Officer (DDO), and then paid by AGPR or your accounts office. These steps are our practical suggestion, based on how pay claims normally move.
- Get your degree attested by HEC, plus an equivalence letter if the degree is foreign or not titled M.Phil.
- Write a short application to your DDO asking for the M.Phil Allowance under Finance Division O.M. No.3(6)IMP/2024-0003 dated 14 September 2026.
- Attach copies of the degree, transcript, HEC attestation and the memorandum.
- Confirm in writing that you do not draw the Ph.D Allowance and did not get M.Phil advance increments before December 2001.
- Check your next pay slip for the new allowance line, and follow up with the DDO if it is missing.
Ask about arrears too. The allowance runs from 17 July 2026 but the memorandum was issued on 14 September, so anyone eligible from day one may be owed arrears for the weeks before it reached their office. Nothing in the order allows payment for any period before 17 July 2026.
What Rs 2,500 a month adds up to
Rs 2,500 a month is Rs 30,000 a year. For an employee eligible from 17 July 2026, the amount due by the end of June 2027 is close to Rs 29,000. That is small next to a full salary, but it is paid every month for the rest of your service.
The allowance sits on top of the revised pay. The full set of 2026 changes is in the revised basic pay scales 2026, and the deductions that come off the other side are covered by the GP Fund deduction rates for federal employees.
Common questions
How much is the M.Phil Allowance for federal employees?
Rs 2,500 a month, which is 25 percent of the Rs 10,000 Ph.D Allowance.
Can I get the M.Phil Allowance for an MS degree?
Yes, from 17 July 2026, if HEC recognises your degree as equivalent to an M.Phil. The accounts office decides each claim.
From when is the new rule effective?
From 17 July 2026, under the Finance Division's memorandum dated 14 September 2026.
Can I get both the M.Phil and Ph.D Allowance?
No. The M.Phil Allowance is not admissible to anyone already drawing the Ph.D Allowance.
Does this apply to Punjab or Sindh government employees?
Not directly. It is a federal order. Provincial employees need their own finance department's order.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked at about 8:15 pm PKT on 10 October 2026. We read, on finance.gov.pk, the Finance Division's O.M. No.3(6)IMP/2024-0003 dated 14 September 2026 and the O.M. No.3(6)IMP/2024 dated 24 November 2025 attached to it, O.M. F.No.3(6)Imp/2016-336 dated 1 July 2016, O.M. F.No.3(6)Imp/2016-Vol-II-4 dated 4 January 2017, and O.M. F.No.1(9)Imp/2000-Vol-XIV-633 dated 7 July 2015 on the Ph.D Allowance. The claim steps are our suggestion, not a Finance Division procedure.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
