Housing Ministry seeks cabinet approval to raise rent ceiling for Govt employees

ISLAMABAD: The Ministry of Housing and Works has sent a summary to the federal cabinet for increasing the rental ceiling for federal government employees.

The Ministry of Housing and Works has sent a summary to the federal cabinet for an 85 percent increase in the house rent ceiling for federal government employees.

The summary recommends a uniform increase for federal employees from Grade 1 to 22.

This increase in the house rent ceiling will come into effect after approval from the federal cabinet, which will benefit hundreds of government employees.

Earlier, the Finance Ministry had given the green signal for the hike, with the summary soon to be presented before the federal cabinet for final approval.

The landmark decision covers employees from Grade 1 to Grade 22, benefiting permanent and contract staff of all federal departments.

The hike will now be calculated on the current basic pay, which was long-awaited as the current allowance was still based on the 2008 basic pay scale.

Officials say the move is aimed at reducing the financial burden on government employees who are facing high housing prices amid record inflation.

The new allowance will be implemented across the country after the cabinet gives its final approval.

“This decision will make a real difference to employees struggling with rent costs,” said a senior finance ministry official, calling the increase “a long-overdue reform.”