Housing Rent Allowance increased by 85pc for Govt employees

ISLAMABAD – A sigh of relief for thousands of government employees, as federal government approved an unprecedented 85pc increase in Housing Rent Allowance (HRA).

According to sources, Ministry of Finance has given green signal to  increase, and the summary will soon be presented before the federal cabinet for final approval. The landmark decision covers employees from Grade 1 to Grade 22, benefiting both permanent and contract staff across all federal departments.

The raise will now be calculated on current basic pay, which was long-awaited change since the existing allowance was still based on the 2008 basic pay scales.

Read more: PCB Chairman Announces Cash Rewards for National Women’s Team

Officials say the move aims to ease the financial burden on government servants facing steep housing costs amid record inflation. Once the cabinet gives its final nod, the new allowance will be implemented nationwide.

“This decision will make a real difference for employees struggling with rent expenses,” said a senior official from the Finance Ministry, calling the hike “a long-overdue correction.”