ISLAMABAD: The Ministry of Housing and Works has announced an 85 percent increase in the rental ceiling for federal government employees, effective from November 1, 2025.
According to the notification, the employees will continue receiving the ceiling amount through their respective departments. Many employees have long demanded that this allowance be added directly to their monthly salaries, saying the current process of getting it approved through departments is slow and causes delays.
Employees appreciated the government’s decision but repeated their demand to include the ceiling amount in their regular salaries.
“We welcome the 85 percent increase, but our main demand remains — the ceiling amount should be made part of our salaries. Getting it approved from different offices is a lengthy process,” said Fazal-i-Mola, President of the Federal Government Heads (Principals) Association.
He explained that government employees fall into three categories: those who avail the ceiling fund, those who live in government-owned houses, and those who receive house rent as part of their salaries. He added that employees who do not have government accommodation should receive rent payments according to their current basic pay scales.
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Malik Ameer Khan, Vice President of the Joint Action Committee of the Federal Directorate of Education (FDE), said the government was still paying house rent based on the 2008 basic pay scale, which was unfair. He urged the government to revise it according to the latest salaries.
“We have been demanding for years that the ceiling fund be made part of salaries. The approval process for house hiring is very complicated. Also, the rent ceiling should be revised every year,” he added.
He said the housing ministry worked hard for almost 18 months to get this 85 percent increase approved and appreciated the efforts of Housing Minister Mian Riaz Hussain Pirzada and the officials involved.
Khan also pointed out another issue — employees living in government houses have 5 percent deducted from their salaries for maintenance, but getting repair work done from departments remains very difficult.
“Instead of this 5 percent deduction, the government should allow allottees to get repairs done on their own,” he suggested.
Meanwhile, the Housing Ministry said in a press release that this was the first revision in four years, as the last increase was made in September 2021.
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It said that the hiring of residential accommodation is decentralised in six major cities — Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar — where private rents have sharply increased due to inflation and population growth, making it hard for government employees to find affordable housing.
Minister Pirzada congratulated federal employees, calling it a “landmark relief measure” that would also reduce pressure on the Estate Office, which manages around 17,400 government houses and nearly 43,000 registered applicants in Islamabad.
Revised Rental Ceiling Rates
| Pay Scale | Islamabad (Rs) | Other Cities (Rs) |
|---|---|---|
| 1–2 | 13,004 | 12,193 |
| 3–6 | 20,313 | 17,860 |
| 7–10 | 30,346 | 27,162 |
| 11–13 | 45,776 | 39,705 |
| 14–16 | 57,507 | 50,198 |
| 17–18 | 76,122 | 66,411 |
| 19 | 1,27,095 | 86,610 |
| 20 | 1,27,095 | 1,09,296 |
| 21 | 1,52,183 | 1,31,548 |
| 22 | 1,82,121 | 1,65,076 |
The ministry said the revision would help ease the financial burden on employees and make housing more accessible in major cities.
