Web desk: The federal government has approved an 85 per cent increase in the house rent ceiling for federal employees to provide relief from soaring rents.
The decision covers employees from grades 1 to 22 in major cities, including Islamabad, Lahore, Karachi, Peshawar, and Quetta. It is expected to cost the national exchequer 12 billion rupees and bring allowances closer to current market rates.
According to details, the federal government has approved an 85 per cent increase in the house rent ceiling to provide relief to its employees from expensive rents.
The federal cabinet approved, through a summary circulation, that this increase will be implemented in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta.
Additionally, it will be for all federal employees from grades 1 to 22, which will have a total impact of 12 billion on the national treasury.
House Rent Ceiling
Sources said that the Ministry of Housing and Works had proposed to the federal cabinet that, because of rising inflation and an increase in rents, the rent allowance of federal employees should be increased significantly.
The ministry said that rents have increased significantly in urban areas, and it has become difficult for government employees to get suitable accommodation within the current allowance.
The last amendment to the rental ceiling was made on September 28, 2021.
The ministry pointed out that most employees have to pay extra money from their own pockets for adequate accommodation, while there is also a severe shortage of government accommodation.
The Finance Division also supported the proposal, saying that an 85 per cent increase is inevitable as per the current market rates.
The Prime Minister directed the Cabinet to seek approval under Rule 17(1)(b) on the recommendation of the ministry.
After the approval of the Cabinet, the implementation of the new rental ceilings will significantly reduce the financial pressure on federal employees and provide them with allowances close to market rates.
