Government raises rental allowance for Grade 1 to 22 employees in six cities

Picture of Hassan Khan

Hassan Khan

Government raises rental allowance for Grade 1 to 22 employees in six cities

Federal Government Raises Rental Ceilings for Government Employees in Major Cities

The federal government has announced an increase in rental ceilings for grade 1 to 22 government employees in six major cities. This adjustment, detailed in a recent notification by the Estate Office, aims to address the rising costs of residential accommodation.

Read More: Weekly inflation increases by 0.01%, with the annual rate hitting 14.36%

Key Details:

Cities Affected:

  • Islamabad
  • Rawalpindi
  • Karachi
  • Peshawar
  • Lahore
  • Quetta

Reason for Revision:
The Ministry of Housing and Works approved the revision following a comprehensive survey that assessed market rent rates in these cities. The survey revealed significant variations in rental rates based on location and sector.

Revised Rental Ceilings for Islamabad:

GradeNew Rate (Rs.)Old Rate (Rs.)Difference (Rs.)
BPS 1 to 210,1927,0293,163
BPS 3 to 615,92110,9804,941
BPS 7 to 1023,78416,4037,381
BPS 11 to 1335,87824,74411,134
BPS 14 to 1645,07331,08513,988
BPS 17 to 1859,66341,14718,516
BPS 1979,32054,70424,616
BPS 2099,61568,70030,915
BPS 21119,72882,62137,107
BPS 22142,74399,44443,299

Overall Increase:
The increase in rental ceilings across all grades amounts to approximately 45%.

This revision is intended to better align government rental allowances with the current market rates, providing financial relief to employees and reflecting the rising costs of housing in these major cities.

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