Govt raises house rent ceiling for employees by up to 85%

ISLAMABAD: Great news for government employees. The government has increased the house rent ceiling of employees.

After approval from the cabinet, a notification was issued to increase the house rent ceiling of government employees.

The cabinet had approved an increase in the house rent ceiling by up to 85%, the summary of which was sent to the federal cabinet by the Ministry of Housing and Works.

There was a proposal for a uniform increase in the house rent ceiling of all employees from Grade 1 to 22.

The federal cabinet approved through summary circulation, this increase will be implemented for all federal employees from Grade 1 to 22 in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar and Quetta, which will have a total impact of 12 billion on the national exchequer.

Sources said that the Ministry of Housing and Works had proposed to the federal cabinet that the rent allowance of federal employees should be significantly increased due to rising inflation and increase in rents.

The ministry said that rents in urban areas have increased significantly and it has become difficult for government employees to obtain suitable accommodation within the current allowance. The rental ceiling was last amended on September 28, 2021.