The federal government has decided to increase the house rent ceiling (hiring rent ceiling) for government employees by up to 85%, and a new notification has been issued which will come into effect from November 1, 2025.
The move covers federal employees from Grade 1 (BPS-1) to Grade 22 (BPS-22), and the decision was taken by the Ministry of Housing and Works in consultation with the Finance Division.
The initial implementation will be in six major stations, namely Islamabad, Rawalpindi, Lahore, Karachi, Quetta and Peshawar, where rents have increased sharply and the burden on employees has increased.
According to the Ministry of Housing, this decision will provide significant relief to government employees, especially those who were having difficulty finding suitable accommodation in the market.
Federal Minister for Housing and Works, Mian Riaz Hussain Pirzada, termed the move as a welcome one for the employees and said that the ministry is working for the convenience and welfare of the employees.
According to the report, this decision will put an annual burden of about Rs 12 billion on the national exchequer, but the government’s ultimate goal is to make the housing facilities of the employees as per the market requirements.
