Govt employees to get raise in rental ceiling

ISLAMABAD: The Ministry of Housing and Works has issued a formal notification, increasing the rent ceiling of federal government employees by 85%, starting from November 1, 2025.

The new rates were approved after consultation with the Finance Division following the approval of the federal cabinet.

Previously, the rent ceilings were revised on September 28, 2021. This time, an overall increase of 85% has been recommended for all federal employees from BS-1 to BS-22.

According to the Ministry, this process will be executed in six major cities: Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar. The rapid increases in rent and the surge in the urban population have made it hard for government employees to find suitable houses under the previously set rates.

Federal Minister for Housing and Works Mian Riaz Hussain Pirzada congratulated all federal employees on this important announcement, stating that employee welfare remains very high on the agenda and the government is increasing the rent ceiling to reduce the financial load on staff.

He further pointed out that the change will ease the burden on the State Office in Islamabad, where there are about 17,400 government housing units, while about 43,000 registered applicants are waiting for accommodation.

The Ministry of Housing and Works remains committed to providing facilities and resolving housing issues for federal employees.