ISLAMABAD – Pakistan’s federal government passed on relief to public sector employees, announcing 85% increase in house rent allowance (HRA).
The raised, which is applicable to employees from Grade 1 to 22, will cover both permanent and contract staff.
According to government sources, Ministry of Finance approved proposal, which will now be presented to the federal cabinet for final approval. Once implemented, the increase is expected to provide significant relief to employees struggling with rising rents and inflation.
A key change in revised Housing Rent Allowance is that it will now be calculated based on current basic salary, unlike the previous system where it was determined according to the 2008 pay scale.
Officials said the move shows government’s commitment to supporting its workforce amidst increasing living costs, and is one of the largest adjustments in housing allowances in recent years.
The cabinet is expected to approve proposal in its upcoming session, after which the new allowance will be officially implemented across all federal departments.
