The federal government has approved a significant 85% increase in the housing rent allowance for govt employees, providing long-awaited financial relief amid rising living expenses.
According to the Finance Ministry, the decision aims to support govt employees struggling with high housing costs across the country. The proposal has been formally cleared by the ministry and will soon be presented to the federal cabinet for final approval.
Increase to Benefit All Grades
The new house rent allowance will apply to all govt employees from grade 1 to 22. The decision ensures that both junior and senior officials will receive equal benefits under the revised structure. It will also include employees working on both permanent and contract bases, making the initiative more inclusive.
Officials explained that the updated allowance will now be calculated on the basis of the current basic salary. This marks a major change from the previous system, where house rent was determined using the basic pay scale of 2008 — a system that had long been criticized for being outdated.
Relief for Lower-Grade Workers
For over a decade, house rent allowances remained stagnant, failing to reflect inflation or the continuous rise in urban housing prices. The latest revision is expected to boost the take-home income of lower-grade govt employees, many of whom have faced severe financial pressure due to increased rent costs.
According to sources, the summary detailing this increase will be reviewed in the next cabinet meeting. Once approved, it will be implemented across all federal departments.
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Officials added that the new system reflects the government’s commitment to addressing the economic challenges faced by public sector workers and ensuring fair compensation in line with current living standards.
