KARACHI – Government employees get higher housing benefits with major increase in the house rent allowance from 50% to 85%, with the revised rate reportedly taking effect from July 1, 2026.
The decision was approved by Sindh Chief Minister Syed Murad Ali Shah amid protests by the Sindh Secretariat Employees Non-Gazetted Welfare Association (SENWA).
The reported increase would raise the allowance by 35 percentage points and bring the housing benefits of eligible employees in line with those available in other provinces. The claim also mentioned that the revised allowance will be paid quarterly, with funds transferred directly to employees’ bank accounts every three months.
Allowance to Be Paid Four 4 Times a Year
Under the reported arrangement, employees would receive their house rent allowance four times annually instead of through monthly transfers. The stated implementation date of July 1, 2026, could also make eligible employees entitled to arrears, subject to the official terms of the decision.
However, the payment schedule, retrospective application and eligibility criteria have not been verified through an official government notification.
If the allowance is calculated as 85% of basic salary, employees could receive significantly higher amounts under the revised structure. An employee with a basic salary of Rs50,000 would receive Rs42,500 under the reported rate, compared with Rs25,000 at the assumed previous rate of 50%. This would represent an increase of Rs17,500.
Similarly, an employee earning Rs80,000 in basic salary could receive Rs68,000, while the corresponding amount for an employee with a basic salary of Rs100,000 would reach Rs85,000.
These estimates assume that the allowance is calculated directly as the stated percentage of basic salary. Actual payments would depend on the applicable rules, employee eligibility and the terms of any official notification.
Sindh Finance Department or the Chief Minister’s House are yet to share official notification or announcement to establish the final terms of the increase and confirm which employees qualify.
85pc raise in House Rent Allowance of govt employees approved
