Major increase in house rent ceiling for government employees approved

ISLAMABAD: The federal government has approved an 85 percent increase in house rent ceiling for government employees.

The federal cabinet has approved a summary of the Ministry of Housing and Works’ 85 percent increase in house rent ceiling, proposing a uniform increase for all federal employees from grades one to 22.

Hundreds of government employees will benefit from the increase in the house rent ceiling.

However, this increase will increase the burden of Rs 12 billion annually on the treasury.

Earlier, the Ministry of Housing and Works sent a summary to the federal cabinet, demanding an 85 per cent increase in the house rent ceiling. The summary recommended a uniform increase for federal employees from Grade 1 to 22.

Under the cabinet decision, all federal employees from grades one to 22 will get a uniform increase in the housing rent ceiling.

According to reports, the decision will impose a financial burden of about Rs 12 billion on the national exchequer; however, it is likely to provide substantial relief to federal employees amid rising inflation.

Sources said that this increase is a fulfillment of a long-pending demand for employees, which will reduce the burden of housing costs.

“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.