M.Phil allowance extended to equivalent degrees

Islamabad: The federal government has extended the Rs2,500 monthly M Phil allowance to include employees with degrees equivalent to M Phil, effective July 17, 2026. Previously, the allowance was only granted to those with HEC-recognized M Phil degrees. Now, it will be available to employees with equivalent qualifications recognized by HEC, upon submission of an equivalence certificate.

The allowance, equivalent to 25 percent of the PhD allowance (Rs2,500 per month), falls under the guidelines set in a July 1, 2016 memorandum. This change removes the previous restriction where mere possession of an HEC-equivalent qualification was insufficient for eligibility. In November 2025, the Finance Division clarified that the policy specifically applied to M Phil degrees, with HEC equivalence previously recognized mainly for recruitment or university admissions.

Since the updated memorandum, the eligibility has been broadened to cover employees who possess such equivalent degrees, provided they present the requisite certificate. The allowance's inception on July 1, 2016, targeted employees holding HEC-recognized M Phil degrees, with conditions stipulating it would not apply to those already receiving a PhD allowance of Rs10,000 monthly or those who had already received the benefit of increments for possessing an M Phil degree prior to December 1, 2001.