ISLAMABAD: Great news for federal government employees as the federal cabinet has approved an increase in the house rent ceiling for employees.
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.
Sources said that the federal cabinet has officially approved the summary through circulation.
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.
The hike will now be calculated on the current basic pay, which has been long-awaited, as the allowance was still based on the 2008 basic pay scale.
