The federal government has approved an 85% increase in the house rent ceiling for government employees across the country to help them cope with rising accommodation costs.
The increase was approved by the federal cabinet through circulation, following recommendations from the Ministry of Housing and Works. The revised house rent ceilings will come into effect from November 1, 2025.
According to the ministry, the revised rates will apply to all employees of federal ministries, divisions, and their attached and subordinate departments. The increase will be implemented in major cities including Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta.
The Ministry of Housing and Works said that the 85% raise has been applied uniformly across all grades from BS-1 to BS-22, to help reduce the financial burden caused by rapidly rising housing and rental expenses.
Officials said the decision aims to provide relief to government employees amid inflation and the sharp increase in rental prices in major urban centres.
