The Federal Board of Revenue (FBR) has officially approved a major increase in the reward ceiling for Inland Revenue (IR) employees. Under the new decision, the reward limit has been raised from 18 salaries to 24 salaries per financial year for meritorious services. This is a big development for thousands of FBR Inland Revenue officers and staff who work in taxation, enforcement, audit, compliance, and revenue mobilization.

This 1500-word detailed article explains the entire update, including the new reward structure, evaluation categories, performance criteria, IT-based mechanism, meeting decisions, and what this change means for FBR officers and Pakistan’s tax system.

Why FBR Increased the Reward Ceiling? – Major Background

The Federal Board of Revenue plays a vital role in Pakistan’s economy by collecting taxes, improving compliance, and combating tax fraud. For many years, Inland Revenue officials demanded a review of the reward rules, arguing that:

The workload had increased
Revenue targets were becoming tougher
Enforcement operations required better incentives
Reward rules were outdated and needed modernization

By increasing the reward cap from 18 to 24 salaries, the FBR aims to boost motivation, transparency, and performance among officers and staff.

Key Decision: Reward Limit Rises to 24 Salaries

One of the biggest decisions in the 3rd FBR Board-in-Council meeting (FY 2025–26) was the approval of amendments to the Inland Revenue Reward Rules, 2021.

What Has Changed?

Previous Reward Limit	New Reward Limit	Category
18 Salaries	24 Salaries	Inland Revenue staff/officers

This increase applies to all employees covered under Rule 6 of the Inland Revenue Reward Rules.

This means high-performing IR officials may now receive up to 24 months of basic salary in rewards based on:

Performance
Output
Target achievement
Special assignments
Meritorious contributions

Meeting Details – Who Approved the Changes?

The major decisions were taken at the FBR Headquarters Islamabad, chaired by the FBR Chairman.

Attendees

Senior board members
Member (Admin & HR)
Member Inland Revenue
Member Customs
PRAL representatives
Other key officials

Three board members were on approved leave.

Consensus Decision

The Board unanimously approved the reward enhancement, showing strong support for improving staff motivation and performance.

New Evaluation Framework for Rewards

FBR has introduced a detailed and modern performance evaluation system for determining quarterly rewards for:

Ex-cadre officers (BS-16 and above)
Ex-cadre staff (BS-1 to BS-15)

This is designed to ensure that rewards are given based on merit, not favoritism.

Performance Tiers for Reward Eligibility

Under the new framework, FBR will categorize employees into performance tiers:

Tier 1 – Outstanding Performance

Top category
Eligible for maximum rewards
High productivity
Achievement of quarterly KPIs
Extra contributions in enforcement & audits

Tier 2 – Very Good Performance

Above-average productivity
Meeting most KPIs
Good compliance record

Tier 3 – Satisfactory Performance

Eligible for lower reward percentage
Basic performance level
Limited enforcement involvement

Tier 4 – Below Standard Performance

Not eligible for quarterly rewards

These tiers will ensure transparency, fairness, and accountability.

Weighted Assessment Mechanism – How Officers Will Be Evaluated

The new reward system will involve the following evaluation layers:

1. Commissioners

Initial evaluation
Performance scoring
KPI assessment

2. Assessment Committee

Review of commissioner’s recommendations
Weightage assignment
Ensures fairness

3. FBR Senior Members

Final approval
Verification
Random checks for transparency

This multi-stage review will prevent favoritism and ensure that rewards are based on documented performance.

Some board members proposed revisiting the weightage assigned to the committee, but the majority agreed on keeping the proposed system intact.

New System to Be Fully IT-Based – PRAL Assigned Responsibility

To avoid manual interference and ensure transparency, the board approved a fully digital reward evaluation system.

Key Features of the IT-Based System

Online scoring system
Digital evaluation forms
Automated reward calculations
No manual paperwork
Full transparency
Activity-based performance tracking

PRAL has been given a strict instruction to deploy the system within 7 days.

This will modernize FBR’s internal processes and reduce corruption, favoritism, and manipulation.

Comparison with Customs Department Rewards

During the meeting, the Board noted that:

The Customs Reward Rules 2012 already allow rewards up to 36 months’ basic salary
Therefore, no amendment is needed for the Customs department

This highlights that Inland Revenue was lagging behind, and the new reform helps close that gap.

Cadre Officers Will Not Be Excluded

Some proposals suggested excluding cadre officers from the new structure.

However, the board did not support this suggestion.

Final Decision

Cadre officers will remain part of the reward framework
Exceptional performance rewards for them will be discussed in the next meeting

This ensures that no officer category is unfairly left out.

Impact of 24-Salary Reward Structure on Inland Revenue Performance

Raising the reward limit is expected to bring significant improvements in:

1. Revenue Collection

Higher motivation → better audits, improved enforcement, and higher tax recovery.

2. Compliance Enforcement

Reward-based incentives can improve compliance actions against:

Tax evasion
Fake invoices
Under-reporting
Illegal businesses

3. Staff Morale

Better rewards increase:

Job satisfaction
Productivity
Sense of recognition

4. Transparency

The new IT system ensures:

No favoritism
Fair scoring
Clear ranking

5. Professionalism and Discipline

Employees will aim to meet KPIs and deliver results.

Why This Reform Matters for Pakistan’s Economy?

Pakistan is facing tough economic conditions, including:

Tax shortfalls
IMF requirements
Low documentation
High evasion levels

By increasing the reward limit to 24 salaries and improving performance evaluation, FBR aims to:

Boost tax revenue
Improve compliance culture
Strengthen governance
Achieve annual revenue targets

This decision ultimately supports national economic stabilization.

FBR Reward Increase – Key Highlights Summary

Reward limit increased from 18 to 24 salaries
Applies to Inland Revenue officers & staff
New performance-tier system introduced
Ex-cadre officers and staff divided into categories
Weighted evaluation by commissioners, committees, and senior members
System will be fully IT-based
PRAL to deploy digital system in 7 days
Customs already eligible for up to 36 salaries – no change
Cadre officers included in reward system

Frequently Asked Questions (FAQs)

1. What is the new FBR reward limit?

The reward ceiling has been increased from 18 salaries to 24 salaries per financial year.

2. Who will get these rewards?

All Inland Revenue officers and staff covered under Rule 6 of the Inland Revenue Reward Rules.

3. How will employees be evaluated for rewards?

Through a tier-based performance system and a weighted evaluation by commissioners, committees, and senior FBR officials.

4. Is the system manual or digital?

The new evaluation and reward system will be fully IT-based.

5. Does this change apply to Customs officers?

No. Customs already has a 36-salary reward limit, so no amendment is required.