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Federal government increases house rent allowance by 45% for employees

News Desk by News Desk
May 13, 2025
in Latest, National
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Federal government increases house rent allowance by 45% for employees
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ISLAMABAD: The federal government has raised the house rent ceiling by 45% for all its employees — from grade 1 to 22 — across six major cities, with the largest increase in the federal capital.

As per a notification issued by the Ministry of Housing and Works, the increased rental ceiling for hiring residential accommodation for staff and officers of federal ministries, divisions, attached departments, and subordinate offices will apply in Islamabad, Rawalpindi, Karachi, Lahore, Quetta, and Peshawar.

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Under the revised rates, the rental ceiling for grade 22 employees has been raised to Rs142,743 per month for Islamabad and Rs125,989 per month for all other cities (the four provincial capitals and Rawalpindi), up from the existing rates of Rs98,444 and Rs89,230 per month, respectively.

Read More: Punjab govt introduces cooperative farming to boost vegetable cultivation

The house rent rate for grade 21 government employees has been raised from Rs82,261 to Rs119,278 per month for Islamabad and from Rs71,107 to Rs98,378 per month for other cities.

Similarly, the rental ceiling for grade 20 has been increased to Rs99,615 from Rs68,700 per month for Islamabad, and from Rs59,079 to Rs82,696 per month for other cities.

Grade-19 officials will now be entitled to Rs79,320 per month for Islamabad and Rs65,542 per month for other cities, up from the existing rates of Rs54,704 and Rs46,816 per month, respectively.

Meanwhile, for grades 17 and 18, the rental ceiling has been set at Rs59,669 for Islamabad and Rs49,808 for other cities, up from the previous rates of Rs41,147 and Rs35,898, respectively.

For grade 14 to 16 employees, the rental rate has been set at Rs45,073 per month for Islamabad and Rs37,665 per month for other cities, compared to the current rates of Rs31,085 and Rs27,134 per month, respectively.

Federal Govt Employees house rent increase notification
Official Notification

Grade 11-13 officials will be entitled to draw up to Rs35,878 per month in Islamabad and Rs30,815 per month in other cities, compared to their existing rates of Rs24,744 and Rs21,462 per month.

The rental ceiling has also been raised to Rs23,784 per month for Islamabad and Rs20,112 per month for other cities for employees in grades 7 to 10, up from their existing rates of Rs16,403 and Rs14,682.

Employees in grades 3 to 6 will now receive Rs15,921 per month in Islamabad and Rs13,230 per month in the other five cities, compared to the previous rates of Rs10,980 and Rs9,654.

The rental rate for grade 1 and 2 employees will now be set at Rs10,192 per month in Islamabad and Rs9,590 per month in other cities, up from the existing rates of Rs7,029 and Rs6,591 per month, respectively.

Tags: Employee Benefits Housing PolicyFederal GovernmentHouse Rent Allowance IncreasedIslamabad Employees Housing AllowanceRental Rates Increase Notification
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