ISLAMABAD – The federal government has clarified the provisions regarding advance salary entitlements for its employees.
It stated that those in Grades 1 to 16 can receive housing advances for up to 36 months’ worth of salaries, while employees in Grade 17 and above are entitled to a maximum of 24 months’ advance salary.
The clarification was issued through a memorandum by the Ministry of Finance, which specifies that federal employees in Grades 1 to 16 fall under the category of “government staff,” while employees in Grade 17 and above are categorized as “officers.”
The Finance Ministry’s explanatory note stated the advance salary for house building will be disbursed in accordance with the Federal Government Receipts and Payment Rules 2025.
It added that employees in lower grades will be able to receive up to 36 months of their salary as an advance, while senior officers can avail up to 24 months’ worth of salary for housing purposes.
This clarification ensures that employees are well-informed about the benefits available to them for housing-related advances, which have been a significant part of the government’s welfare initiatives.
Meanwhile, the federal cabinet has approved an 85% increase in the house rent ceiling for government employees, effective across the country.
The decision, which was made through a circulation summary, will benefit all federal employees from Grade 1 to Grade 22.
Reports said the Ministry of Housing and Works had submitted a summary for the cabinet’s approval, which was formally sanctioned in the latest cabinet meeting. The decision will significantly increase the house rent allowance for federal employees, offering them much-needed relief amidst the rising cost of living.
This increase in the house rent ceiling is expected to have a financial impact on the national exchequer, with an estimated cost of approximately PKR 12 billion.
