Govt employee’s housing rent allowance hiked by 85%

ISLAMABAD: In a relief for thousands of government employees, the federal government has approved an unprecedented 85 percent hike in Housing Rent Allowance (HRA).

According to sources, the Finance Ministry has 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.”