FBR Announces 2 Years of Salary As Reward for Hard-Working Officers – Full Details, Amendments, and Impact Explained
The Federal Board of Revenue (FBR) has taken a major step toward motivating its workforce by approving a significant enhancement in the reward structure for Inland Revenue (IR) officers and staff. The new decision, announced during the third FBR Board-in-Council meeting for FY 2025-26, increases the upper reward limit from 18 salaries to 24 salaries per year for exceptional and meritorious performance.
This move is being widely discussed across Pakistan as thousands of taxpayers search for updates on “FBR reward policy 2025,” “FBR 24 salaries reward rules,” “FBR performance-based rewards,” “Inland Revenue Reward Rules 2021 amendments,” and related topics. To make things easier, this comprehensive article explains everything in clear, simple English.
What the New FBR Reward Policy Means
The FBR has approved amendments to the Inland Revenue Reward Rules, 2021, officially raising the annual reward ceiling for meritorious services from 18 salaries to 24 salaries. This essentially means that the most hardworking officers and staff can now receive up to two years’ basic salary as a reward.
The decision aims to encourage performance, enhance tax collection, and recognize officers who significantly contribute to Pakistan’s revenue system.
Officials say the revised framework will:
- Make performance-based rewards more transparent
- Link incentives directly with quarterly and annual output
- Improve motivation among Inland Revenue officers
- Strengthen FBR’s human-resource structure
- Reduce internal resistance and increase institutional efficiency
With Pakistan’s tax machinery under enormous pressure to broaden the tax net and curb evasion, the amendment is expected to have a major impact on revenue collection.
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Background: Why FBR Updated the Reward Limit
In recent months, Pakistan has struggled to meet revenue targets, recover unpaid taxes, and reduce leakages. The government has set ambitious goals for FY 2025-26, pushing the FBR to boost digitization, enforcement, and data integration.
Officials say the existing reward structure had several limitations:
- Reward limits were outdated
- There was no clear mechanism for evaluating ex-cadre staff
- Quarterly performance assessments were inconsistent
- Officers felt demotivated due to limited incentives
To address these concerns, the Board-in-Council conducted multiple internal meetings and reviewed proposals from the Admin & HR Wing. After detailed evaluations, the Board unanimously decided to increase the ceiling to 24 salaries, making it one of the biggest reward reforms in recent years.
Key Amendments Approved by the FBR Board
During the meeting chaired by the FBR Chairman, the following changes were approved:
1. Reward Ceiling Increased from 18 to 24 Salaries
Officials under Rule 6 of IR Reward Rules will now be eligible for rewards up to 24 basic salaries per financial year.
2. New Evaluation Mechanism for Ex-Cadre Officers
Performance tiers will now classify:
- Officers (BS-16 and above)
- Staff (BS-1 to BS-15)
Each quarter, officers will be evaluated based on:
- Revenue contribution
- Audit and enforcement performance
- Taxpayer facilitation
- Anti-evasion measures
- Digital compliance
3. Weighted Evaluation Framework Introduced
Multiple committees—including Commissioners, Chief Commissioners, and Board Members—will now evaluate officers using a weighted scoring formula.
This ensures:
- No single authority can award rewards alone
- Fair assessment for all officers
- Transparency in reward approval
4. Fully IT-Based System to Be Launched
PRAL has been instructed to deploy the automated system within 7 days.
The new framework will include:
- Digital scorecards
- Performance dashboards
- Online approvals
- Reward tracking
This will drastically reduce manipulation, favoritism, and manual evaluation issues.
5. Customs Reward Rules Will Remain Unchanged
The Board noted that Customs Reward Rules already allow up to 36 salaries, so no changes are required for now.
6. Agenda for Officer Exclusion to Be Discussed Later
Some members suggested excluding cadre officers, but the Board rejected it for now. This matter will be taken up again in an upcoming meeting.
Why the Government Approved 24-Salary Rewards
The government sees the tax system as the backbone of Pakistan’s economic recovery. While IMF targets, inflation pressures, and revenue deficits have created challenges, policymakers believe investing in tax officials is essential.
The enhanced reward system aims to:
- Combat tax evasion
- Increase recovery from major sectors
- Motivate officers to crack down on undocumented economy
- Improve taxpayer monitoring
- Boost morale within the organization
This comes after FBR earlier uncovered massive tax evasion scandals, including:
- Rs. 30 billion annual tax evasion in the tile sector
- Underreporting in real estate
- Sales tax fraud
- Fake business invoicing
Stronger incentives are expected to improve enforcement and widen the tax base.
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How Officers Will Be Evaluated
Under the revised system, performance will be assessed through a structured scoring method:
Quarterly Evaluation Areas
- Revenue collection
- Filing targets
- Audit and anti-evasion actions
- Digital compliance performance
- Contribution to policy reforms
- Taxpayer dispute resolution
Final Annual Reward Criteria
- Consistent quarterly performance
- Conduct and disciplinary record
- Teamwork and leadership
- Special achievements
Scores will determine whether an officer falls under:
- Tier-1 (Highest performers – eligible for full 24 salaries)
- Tier-2 (Moderate performers – partial reward)
- Tier-3 (Low performers – minimal bonuses)
This structure promotes fair competition and removes favoritism.
Impact on FBR Workforce
Experts say the new framework will:
Increase Motivation
A reward equivalent to two years’ salary is a huge incentive, especially for officers who work long hours on enforcement, audits, and investigations.
Improve Performance Culture
Smart goals and digital scorecards will encourage officers to prioritize measurable output.
Support Anti-Evasion Efforts
High performers in enforcement wings will receive direct financial rewards, which may increase recoveries.
Reduce Corruption
Transparent reward rules reduce the need for officers to seek unofficial financial gains.
Enhance Revenue Collection
Pakistan aims to cross record revenue milestones. Motivated officers are key to achieving this.
Challenges Expected
Despite major improvements, there are still concerns:
- Some officers worry the evaluation system may still be misused
- There may be disputes between performance tiers
- Digital implementation might face delays
- Budget constraints may impact reward disbursement
However, officials say all issues will be addressed in Phase-2 of the reform plan.
How Taxpayers Will Benefit
A more motivated and transparent FBR will help:
- Boost tax collection
- Reduce evasion
- Increase documentation
- Decrease reliance on indirect taxes
- Improve enforcement on major industries
- Stabilize the economy
Ultimately, better tax governance means better national services for citizens.
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Conclusion About FBR increases reward limit to 24 salaries:
FBR’s decision to increase the reward ceiling from 18 to 24 salaries marks a historic reform in Pakistan’s tax administration. By introducing digital evaluation, transparent assessment mechanisms, and performance tiers, the government aims to uplift officer motivation and improve revenue collection.
As Pakistan continues to focus on tax reforms, these changes will likely have long-term positive effects—improving both accountability and efficiency within FBR.
FAQs – FBR Increases Reward Limit to 24 Salaries
1. What is the new FBR reward policy announced in 2025?
The FBR has increased the reward ceiling for Inland Revenue officers from 18 salaries to 24 salaries per year. This reward will be given to officers who show exceptional performance and meet the evaluation criteria.
2. Who is eligible for the 24-salary reward?
All officers and staff covered under Rule 6 of the Inland Revenue Reward Rules, including ex-cadre officers (BS-16 and above) and staff (BS-1 to BS-15), are eligible if they meet performance standards.
3. How will FBR evaluate officers for the rewards?
Officers will be evaluated through a new digital, weighted system that measures quarterly performance, revenue contribution, anti-evasion work, digital compliance, and overall conduct.
4. Will Customs officers also get the increased salary reward?
No. Customs officers already have a separate reward system under the Customs Reward Rules 2012, which allows rewards up to 36 months’ basic salary. Therefore, no change was needed.
5. Why did the government increase the reward from 18 to 24 salaries?
The government wants to motivate officers, improve tax collection, and encourage transparency. The new reward system aims to boost performance, reduce corruption, and enhance revenue generation across Pakistan.
