The federal government has given a big relief to its employees by approving an 85% increase in the house rent ceiling for government workers from BS-1 to BS-22. This increase will apply to employees in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta.
According to sources, the Ministry of Housing and Works suggested this raise to the federal cabinet because house rents in major cities have gone up sharply in recent years. The last time the rent ceiling was increased was in September 2021.
The ministry explained that many government employees were struggling to find proper houses within the old rent limits. In many cases, they had to pay extra from their own salaries because of high market rents. The shortage of government-owned houses made the situation even harder.
After reviewing the situation, the Finance Division agreed with the ministry’s proposal to raise the rental ceilings by 85% for all employees. The Prime Minister also approved the proposal and allowed it to be sent to the federal cabinet for final approval.
Now that the cabinet has approved it, this decision will reduce the financial pressure on government employees and help bring their housing allowances closer to actual market rent rates.