The Ministry of Housing and Works has sent a summary to the federal cabinet proposing an increase in the rental ceiling for federal government employees.
The Ministry of Housing and Works has forwarded a summary to the federal cabinet recommending an 85% increase in the house rent ceiling for federal government employees.
The summary proposes a uniform increase for employees from Grade 1 to Grade 22.
This increase in the house rent ceiling will come into effect after approval by the federal cabinet, benefiting hundreds of government employees.
Earlier, in February, a 60% to 125% increase in the rental ceiling had also been proposed.
The proposal aimed to raise the house rent ceiling for federal employees in six major cities of the country — Islamabad, Rawalpindi, Karachi, Lahore, Peshawar, and Quetta.
Earlier in July, the government increased 10% salaries of federal government employees.
According to the notification issued by the Ministry of Finance, the salary increase will take effect from July 1, 2025, and will be applied to the current basic pay.
In addition, a separate notification has been issued for granting a 30% Disparity Reduction Allowance to employees and officers from Grade 1 to 22.
