FBR Increases Reward Limit to 24 Salaries for High-Performing Inland Revenue Officers. The Federal Board of Revenue (FBR) has officially approved a major increase in the reward ceiling for hardworking Inland Revenue officers. Under the new decision, officers can now receive up to 24 months of basic salary as a reward for exceptional performance, an increase from the previous limit of 18 salaries.
FBR Updates Inland Revenue Reward Rules 2021
During the third meeting of the FBR Board-in-Council for FY 2025–26, top officials approved amendments to the Inland Revenue Reward Rules, 2021. These amendments:
- Raise the upper reward limit from 18 to 24 salaries
- Introduce a new evaluation system for ex-cadre officers
- Strengthen transparency through a digital and weighted assessment mechanism
The meeting was held at FBR Headquarters in Islamabad and chaired by the FBR Chairman. Senior members attended, while a few were granted leave of absence.
New Evaluation System for Ex-Cadre Officers
FBR has introduced an updated performance evaluation mechanism covering:
- Ex-cadre officers (BS-16 and above)
- Staff members (BS-1 to BS-15)
According to the presentation given by the Member (Admin & HR), employees will now be placed into performance tiers to determine their eligibility for quarterly rewards.
How the New Performance Assessment Will Work
- A weighted scoring mechanism will be used
- Assessments will involve:
- Commissioners
- Performance Committees
- Senior FBR members
- Scores will determine how much reward an employee qualifies for
- The system aims to eliminate favoritism and improve fairness
Some members suggested revisiting the weightage assigned to the Assessment Committee, but the majority—including the FBR Chairman—supported the proposed structure.
Digital Reward System to Be Launched in 7 Days
To improve transparency and prevent manipulation, the entire reward process will now be fully IT-based.
FBR has directed PRAL (Pakistan Revenue Automation Limited) to deploy the digital system within seven days, ensuring quick implementation of the new rules.
No Changes to Customs Reward Rules
The Board noted that the Customs Reward Rules, 2012 already allow officers to receive up to 36 months’ basic salary as a reward. Since this ceiling is much higher than that of Inland Revenue, no amendment is required for Customs at this stage.
Cadre Officers Will Not Be Excluded
Although some members recommended changes to the eligibility of cadre officers, the Board decided not to exclude them from reward benefits.
However, the matter of providing special rewards for exceptional performance by cadre officers will be discussed separately in the next FBR meeting.
Why This Decision Matters
The increase from 18 to 24 salaries is one of the most significant reward adjustments in recent years. It is expected to:
- Boost staff motivation
- Improve tax collection performance
- Encourage transparency in the reward system
- Strengthen merit-based culture in Inland Revenue
This move also aligns with FBR’s broader reform agenda aimed at modernizing operations and improving revenue performance across Pakistan.
FBR Approves 24-Month Salary Reward for High-Performing Officers (2025 Latest Update)
The Federal Board of Revenue (FBR) has approved a major revision in its reward policy, allowing Inland Revenue officers to receive up to 24 months’ salary as a performance reward. This increase—from the previous limit of 18 salaries—aims to recognize outstanding work and boost motivation within the tax department.
This decision was finalized during the third Board-in-Council meeting for FY 2025–26, held at FBR Headquarters in Islamabad under the leadership of the FBR Chairman
Reward Limit Increased Under Updated Rules
FBR has amended the Inland Revenue Reward Rules, 2021, introducing two major changes:
- The reward ceiling is increased from 18 to 24 salaries per financial year
- A new performance evaluation system is introduced for ex-cadre officers and staff
These amendments were unanimously approved by the Board, with senior members attending the session.
New Performance Evaluation Mechanism Introduced
A revised assessment framework will now determine how officers and staff qualify for quarterly rewards. According to details shared by the Member (Admin & HR):
- Ex-cadre officers (BS-16 and above) and
- Staff (BS-1 to BS-15)
will be placed in performance tiers, and their rewards will depend on their evaluation results.
How the New Evaluation System Works
The revised system will use a weighted scoring formula, involving:
- Commissioners
- Evaluation Committees
- Senior Board Members
This multi-level scoring system is designed to ensure transparency and eliminate favoritism.
Some members recommended revisiting the weightage assigned to assessment committees, but the majority—including the Chairman—supported the proposed plan.
100% Digital Reward System to Be Implemented
To make the reward process more transparent and efficient, FBR has decided to implement a fully digital reward system.
PRAL (Pakistan Revenue Automation Limited) has been instructed to deploy the new IT-based framework within seven days, ensuring quick activation of the updated rules.
Customs Reward Rules Already Allow Higher Ceiling
The Board observed that the Customs Reward Rules, 2012 already allow rewards up to 36 months’ basic salary, so no amendments are required for the Customs department at this stage.
Cadre Officers Still Included in Reward Structure
Although some members suggested excluding cadre officers from the reward mechanism, the Board rejected the proposal. Instead, it decided that special performance-based rewards for cadre officers will be discussed separately in the next meeting.
What This Means for FBR Staff
The increase in the reward limit is expected to:
- Improve employee motivation
- Encourage higher productivity
- Promote merit-based culture
- Strengthen overall revenue performance
This is one of the most significant changes in FBR’s reward policy in recent years and is part of ongoing reforms to modernize Pakistan’s tax administration.
Conclusion
FBR’s decision to raise the reward limit to 24 salaries marks a major step toward improving accountability, motivation, and performance within the tax system. The new digital evaluation framework ensures transparency, fairness, and a stronger merit-based culture across Inland Revenue.
