The Ministry of Housing and Works has submitted a summary to the federal cabinet recommending an 85% increase in the house rental allowance Pakistan 2025 for federal government employees from Grade 1 to Grade 22.
Based on the proposal, the increment will be done equally in all scales of payment and will be effective when the federal cabinet approves it. The revision is meant to revise the house rent ceiling according to the present accommodation prices in the major cities such as Islamabad, Rawalpindi, Karachi, Lahore, Peshawar, and Quetta.
In February 2025, the ministry had also recommended a 60-125 percent adjustment of the rental ceiling of federal employees in the same six cities. The most recent summary has made this adjustment a regular thing to have uniform house rental allowance Pakistan 2025 policy across the country.
The government also gave a go-ahead to a 10 percent pay raise to federal workers, which will come into effect on July 1, 2025, as stated in the notification of the Ministry of Finance. Also, the 30% Disparity Reduction Allowance was added to the officers and staff of Grade 1 to 22, which additionally correlated federal pay and benefits with the inflationary trends.
The proposed increment in the house rental allowance Pakistan 2025 which has a 85% increment awaiting final approval of the cabinet. Upon implementation, it will offer financial ease to hundreds of federal government employees who are experiencing escalating rental prices in the key cities in Pakistan.
