TESCO Approves Major Increase in Employees’ Allowances

Quick Answer

TESCO has approved a revised relief package for its employees, effective from July 1, 2026. It includes a 7% Ad Hoc Relief Allowance, a 15% Disparity Reduction Allowance for BPS-1 to BPS-22 employees, and a 50% increase in conveyance allowance. The monthly conveyance allowance for employees with disabilities has also increased from Rs6,000 to Rs10,000.

TESCO Announces Revised Employee Allowances

PESHAWAR: The Tribal Areas Electricity Supply Company (TESCO) has approved increases in salaries and different allowances for its employees.

According to a notification issued by the company, the revised pay scales and allowances will apply from July 1, 2026. The package covers ad hoc relief, disparity reduction and conveyance support.

The decision is expected to provide financial relief to employees facing rising household and transportation expenses.

7% Ad Hoc Relief Allowance Approved

TESCO employees will receive a 7% Ad Hoc Relief Allowance on their running basic pay.

Running basic pay refers to an employee’s current basic salary. Therefore, the value of the allowance may differ depending on the employee’s pay scale and existing basic salary.

The notification does not provide a fixed amount for every employee because the allowance will be calculated as a percentage of individual basic pay.

15% Disparity Reduction Allowance

TESCO has also approved a 15% Disparity Reduction Allowance for employees working in Basic Pay Scales BPS-1 to BPS-22.

However, this allowance will not be calculated on the employee’s current basic salary. According to the notification, its calculation will be based on the basic pay applicable on June 30, 2022.

This measure is intended to reduce differences in pay and provide additional support across different employee grades.

Conveyance Allowance Increased by 50%

The company has approved a 50% increase in the conveyance allowance paid to its employees.

Conveyance allowance helps employees meet the cost of travelling between their homes and workplaces. A 50% increase may offer meaningful support as daily transportation and fuel expenses continue to affect household budgets.

The revised conveyance allowance will also take effect from July 1, 2026.

Higher Support for Employees With Disabilities

TESCO has announced a separate increase in the monthly conveyance allowance for employees with disabilities.

Their allowance has been raised from Rs6,000 to Rs10,000 per month. This represents an increase of Rs4,000, or approximately 66.7%.

The measure provides additional travel support to employees who may face higher commuting costs because of accessibility and mobility needs.

Breakdown of the Revised TESCO Package

Link With Federal Budget Relief

TESCO’s announcement follows the salary and pension relief introduced in the federal budget for 2026–27.

While presenting the budget in the National Assembly, Federal Minister for Finance Muhammad Aurangzeb announced a 7% increase in the salaries of government employees. Pensions for retired government employees were also increased by 7%.

TESCO’s notification separately confirms the allowances approved for its employees. The company’s package should therefore be understood according to its own notification and eligibility rules.

Minimum Wage Increase

The government also announced a 10% increase in the minimum wage for workers as part of the new budget.

This increase is part of the broader relief measures announced for the workforce. However, it is separate from TESCO’s revised salary and allowance package.

Who Will Benefit From the Decision?

TESCO employees will benefit according to their pay scale, current basic salary and eligibility for each allowance.

The 7% Ad Hoc Relief Allowance will depend on an employee’s running basic pay. The 15% Disparity Reduction Allowance covers employees from BPS-1 to BPS-22 but will be calculated using basic pay as of June 30, 2022.

Eligible employees will also receive the revised conveyance allowance, while employees with disabilities will receive Rs10,000 per month under the special conveyance provision.

Expected Impact on Employees

The revised package will increase the overall monthly compensation of eligible TESCO employees. However, the exact increase will not be the same for everyone because the allowances use different calculation methods.

The ad hoc relief depends on current basic pay, while the disparity reduction allowance uses an earlier basic-pay reference. Employees will need to check their salary slips and the official notification to determine the exact amount they will receive.

The higher conveyance allowance may also reduce some of the pressure created by rising commuting expenses.

Conclusion

TESCO’s revised package provides several forms of financial relief to its workforce. It includes a 7% Ad Hoc Relief Allowance, a 15% Disparity Reduction Allowance for BPS-1 to BPS-22, and a 50% increase in conveyance allowance.

Employees with disabilities will receive additional support through an increase in their monthly conveyance allowance from Rs6,000 to Rs10,000. All revised benefits will take effect from July 1, 2026, subject to the conditions stated in TESCO’s official notification.

Frequently Asked Questions

1. What allowances has TESCO approved for its employees?

TESCO has approved a 7% Ad Hoc Relief Allowance, a 15% Disparity Reduction Allowance and a 50% increase in conveyance allowance.

2. When will the revised TESCO allowances take effect?

The revised salaries and allowances will take effect from July 1, 2026.

3. How will the 7% Ad Hoc Relief Allowance be calculated?

The 7% Ad Hoc Relief Allowance will be calculated on an employee’s running basic pay.

4. Who is eligible for the Disparity Reduction Allowance?

TESCO employees working in Basic Pay Scales BPS-1 to BPS-22 are eligible for the 15% Disparity Reduction Allowance.

5. How will the 15% Disparity Reduction Allowance be calculated?

It will be calculated using the employee’s basic pay as of June 30, 2022.

6. How much has TESCO increased the conveyance allowance?

TESCO has approved a 50% increase in the conveyance allowance for eligible employees.

7. What is the new conveyance allowance for employees with disabilities?

The monthly conveyance allowance for employees with disabilities has increased from Rs6,000 to Rs10,000.