Punjab Financial Assistance for Civil Servants Who Die in Service: Rates, Eligibility and Shares

1.Quick Answer

When a Punjab civil servant dies in service on or after 10 January 2024, the family receives a one-time lump-sum grant of Rs 3,000,000 to Rs 7,000,000, depending on the BPS in which the employee was drawing pay. The family also receives a monthly family salary through an OSD post until the deceased's date of superannuation, followed by family pension, along with other benefits such as education reimbursement and retention of government accommodation.

For deaths on or after 2 December 2024, the grant is paid to the widow or widows (or the widower) and, in certain cases, the eligible children, as clarified by the Finance Department on 10 December 2025. You can work out the exact amount and each heir's share with the Punjab Financial Assistance Calculator.

2.What the Financial Assistance Package Includes

The Finance Department's policy letter dated 15 August 2017, applicable from 22 February 2017, sets out the package for families of civil servants who die while in service. As revised from time to time, it includes:

• a one-time lump-sum grant based on the BPS;
• a monthly family salary through an OSD post until the deceased's date of superannuation, and family pension after that date;
• retention of government accommodation until the deceased's date of superannuation;
• education support for up to three children;
• marriage grant and monthly benevolent grant under the Punjab
• Government Servants Benevolent Fund rules;
• free health facilities as per the entitlement during service;
• payment of the General Provident Fund balance;
• group insurance under the Punjab Government Employees Welfare Fund Ordinance, 1969; and
• nomination of an officer as counsel to help the family complete the case.

The provision for appointing a child or widow in BS-1 to BS-11 was also part of the original package, but it is not available for deaths on or after 26 July 2024.

3.How the Lump-Sum Grant Has Changed Since 2017

The amount depends on the date of death, because the rates have been revised twice:

• 15.08.2017 (deaths from 22.02.2017): Rs 1.6 million (BPS 1–4) to Rs 4.0 million (BPS 20 and above).
• 07.12.2023 (deaths from 21.11.2023, as clarified on 15.12.2023): Rs 5 million to Rs 20 million. The job provision for a child or widow was discontinued.
• 07.02.2024 (deaths from 10.01.2024): Rs 3 million to Rs 7 million. Education support became reimbursement of actual fees, and the job provision was restored.
• 19.08.2024: the family salary was defined as basic pay plus admissible allowances through an OSD post, and the job provision was removed because Rule 17-A of the PCS (A&CS) Rules, 1974 was omitted from 26.07.2024.
• 27.08.2025: the package was detached from Rule 4.10 of the Punjab Civil Services Pension Rules for deaths from 02.12.2024, and the eligible family members were defined.
• 10.12.2025: the Finance Department clarified how the package is distributed among heirs.

4.Step-by-Step: Working Out the Grant

4.1.Step 1 — Find the rate table from the date of death

Use the 2017 rates for deaths from 22.02.2017 to 20.11.2023, the December 2023 rates for deaths from 21.11.2023 to 09.01.2024, and the current rates for deaths on or after 10.01.2024. Deaths before 22.02.2017 fall under the earlier package of 2014.

4.2.Step 2 — Find the BPS group

The BPS means the pay scale in which the civil servant was drawing pay at the time of death. The grant is fixed for six groups: 1–4, 5–10, 11–15, 16–17, 18–19, and 20 and above. Officers in BPS-21 and BPS-22 fall in the "20 and above" group.

4.3.Step 3 — Identify the eligible family members

For deaths on or after 2 December 2024, only the following are eligible: the wife or wives of a male civil servant, the husband of a female civil servant, sons below 24 years, unmarried daughters, and physically or mentally handicapped children of any age. A son aged 24 or above and a married daughter are not eligible.

4.4.Step 4 — Divide the grant

If there is one surviving spouse and all children are from that marriage, the full grant goes to the spouse. If the spouse is not alive or is divorced, it is divided equally among the eligible children. If there is more than one widow, or there are children of a wife who died earlier, everyone shares equally when the total is four or fewer; when it is more than four, each widow receives one-fourth and the balance, if any, goes equally to the children. The same method applies to a female civil servant who leaves children from a former marriage, with the husband in place of the widows.

5.Worked Examples

5.1.Example 1: BPS-16 teacher with one widow

A BPS-16 teacher dies on 5 March 2026, leaving his wife and three children, all from that marriage. The grant is Rs 4,500,000, and the full amount goes to the widow.

5.2.Example 2: BPS-18 officer with two widows and three children

A BPS-18 officer dies on 10 January 2025, leaving two widows and three eligible children. The grant is Rs 6,000,000. There are five beneficiaries, which is more than four, so each widow receives one-fourth (Rs 1,500,000), and the balance of Rs 3,000,000 is divided among the three children (Rs 1,000,000 each).

5.3.Example 3: BPS-14 female employee with a child from a former marriage

A BPS-14 female employee dies on 1 February 2026, leaving her husband, two children by him and one child from a former marriage. The grant is Rs 4,000,000. There are four beneficiaries, so each receives an equal share of Rs 1,000,000.

5.4.Example 4: Widowed BPS-9 employee with children of different ages

A widowed BPS-9 employee dies on 1 March 2026. He leaves a son aged 26, a son aged 20, an unmarried daughter aged 17 and a married daughter. Only the son aged 20 and the unmarried daughter are eligible. The grant of Rs 3,500,000 is divided equally between them, so each receives Rs 1,750,000.

5.5.Example 5: Death in December 2023

A BPS-12 employee dies on 15 December 2023. The death falls between 21.11.2023 and 09.01.2024, so the grant is Rs 10,000,000. Because the death was before 2 December 2024, the heirs are determined under the Rule 4.10 family definitions that applied at that time.

6.Family Salary Through an OSD Post

Under the Finance Department's letter dated 19 August 2024, the family receives the basic pay and admissible allowances of the deceased — House Rent Allowance, Special Allowance 20% (2009), Medical Allowance, Utility Allowance and Adhoc Relief Allowances — along with annual increases in the basic pay, through the creation of an OSD post.
The family salary continues until the deceased's date of superannuation, which is the day before his or her 60th birthday. After that date, family pension is admissible under Rule 4.10 of the Punjab Civil Services Pension Rules.

• The administrative department must send the OSD case to the Finance Department, complete in all respects, within ten days of the death (letter dated 16.01.2024).
• Legal heirs drawing the family salary must submit a life certificate or no-marriage certificate to the Accountant General Punjab or the District Accounts Office twice a year, on Forms C and C-I (letter dated 04.06.2025).
• If the widow remarries or dies, the family salary is divided equally among sons below 24 years and unmarried daughters; handicapped children receive it without any age limit (letter dated 10.12.2025).

7.Education, Employment and Other Benefits

• Education: for deaths on or after 10.01.2024, the actual fee and mandatory charges — including registration, admission, examination, tuition and library charges — are reimbursed for up to three children, up to 16 years of education at any public or private institution in Pakistan. For earlier deaths, an educational scholarship is admissible from the Benevolent Fund for up to three children.
• Employment of a child or widow: available for deaths from 22.02.2017 to 20.11.2023, discontinued from 21.11.2023 to 09.01.2024, restored from 10.01.2024, and not available for deaths on or after 26.07.2024.
• Accommodation: the family may retain government accommodation until the deceased's date of superannuation.
  GP Fund and group insurance: payable under their own rules.

8.Special Cases

• Unmarried civil servant: the family of an unmarried civil servant who dies on or after 02.12.2024 is not entitled to the package.
• Minor children with no widow: the sanctioning authority may pay the minor children's share to their mother. If she is not alive or was divorced, it may appoint a suitable guardian to receive it on their behalf.
• Adopted children: eligible only if the personal law of the deceased recognises adoption as conferring the status of a natural child (clarification dated 10.12.2025). An earlier advice dated 30.08.2024 noted that there is no concept of adoption in Muslim law.
• Surrender of share: an eligible heir cannot surrender his or her share to another heir.
• PAS/PSP officers posted in Punjab: their families are also entitled to the OSD post facility until superannuation, from 22.02.2017. Their family pension cases are processed by the Federal Government.
• Contract employees: they are not civil servants and are covered by a separate S&GAD policy with different rates.

9.Who Helps the Family Complete the Case?

Under the 2017 package, the pension or GP Fund sanctioning authority of the department or office is nominated as counsel to help the family finalise the entire package in the shortest possible time. Family pension cases, including in-service death cases, are processed through a simple two-page proforma under the Direct Credit Scheme notified by the Finance Department on 01.04.2014.

10.Official Notifications

All Finance Department letters referred to in this guide are available to view and download on the Punjab Financial Assistance Calculator page, under Official Documents:

• Policy letter No.FD-SR-I/3-10/2004 dated 15.08.2017 — financial assistance package
• Letter No.FD-SR-I/3-10/2004 dated 07.12.2023 and clarification No.FD.SR-I/3-10/2004(P-II) dated 15.12.2023 — revised lump-sum grant
• Letter No.FD.SR-I/3-5/2015 dated 16.01.2024 — creation of OSD post
• Letter No.FD.SR-I/3-10/2004(P-II) dated 07.02.2024 — revised grant, education and employment
• Letter No.FD.SR-I/3-9/2018 dated 19.08.2024 — family salary and employment
• Advice No.FD.SR-I/3-18/2024 dated 30.08.2024 — adopted child
• Letter No.FD.SR-I/3-53/2024 dated 04.06.2025 — life certificate
• Letter No.FD.SR-I/3-10/2004(P-II) dated 27.08.2025 and 10.12.2025 — eligible family members and distribution

This guide is based on the Finance Department notifications listed above. The final amount is sanctioned by the competent authority, and any later notification will prevail.