The federal government has approved an 85 percent increase in the house rent allowance for government employees, marking a significant relief amid persistent inflation and high living costs. The Ministry of Housing and Works had forwarded a proposal recommending a uniform rise in the house rent ceiling for all federal employees, ranging from grade one to grade 22. The summary was later approved by the federal cabinet through circulation, paving the way for implementation after final notification.
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According to official sources, the move aims to address the long-standing demands of government workers struggling with the escalating cost of housing. Rising rents in major cities had made it difficult for many employees to afford accommodation within their existing allowances. With this revision, thousands of federal employees are expected to benefit, easing financial pressures and improving living standards for public servants across various departments.
The newly approved increase will take effect once it receives the formal circulation approval of the cabinet. Officials stated that the decision will benefit hundreds of employees nationwide, including those working in key ministries and autonomous departments. This adjustment aligns with the government’s broader policy of supporting public sector workers amid challenging economic conditions.
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However, this increment is expected to put an additional annual financial burden of approximately Rs12 billion on the national exchequer. Despite the added cost, the government maintains that the welfare of its employees remains a priority, especially during times of economic strain and inflationary pressures. The revised house rent ceiling is designed to strike a balance between fiscal responsibility and employee welfare.
Furthermore, economic analysts believe that the increase will improve employee morale and productivity while helping stabilize the housing market for public sector workers. The decision demonstrates the government’s recognition of rising living costs and its commitment to providing financial relief to its workforce. The adjustment in rent allowance represents one of the most substantial revisions in recent years for federal employees.