ISLAMABAD: The federal government has approved a significant 85 per cent increase in the house rent allowance (HRA) for employees from grade one to grade 22, officials confirmed on Thursday. The decision is aimed at providing relief to government servants amid rising living costs.
According to details, the Ministry of Housing and Works had proposed a uniform raise across all pay scales. The federal cabinet reviewed and approved the summary, which will take effect after formal circulation approval.
Thousands of Employees to Benefit from the Decision
The increase is expected to benefit hundreds of federal employees across various departments and ministries. Once implemented, the enhanced allowance will help offset housing expenses faced by government workers, particularly in major urban centres.
Fiscal Impact Estimated at Rs12 Billion Annually
Officials said the move would impose an additional annual burden of around Rs12 billion on the national exchequer. However, the government maintains that the increase is essential to improve employee welfare and retention in the public sector.
The new rates are expected to be reflected in upcoming salary disbursements once the final approval process concludes.
