Govt approves 85% hike in housing rent for federal employees

The federal government has decided to grant an 85 percent increase in the housing rent allowance for government employees of all grades.

The proposal will soon be presented to the Federal Cabinet for final approval. According to official sources, the increase will apply to employees from grades 1 to 22, covering both permanent and contract workers. Officials confirmed that the revised allowance will now be calculated on the basis of the current basic salary instead of the 2008 pay scale, which had been in use for many years.

This revision is expected to bring major financial relief to government workers, especially those facing rising rent and living costs. Once approved by the cabinet, the new policy will benefit thousands of employees nationwide and help them manage the impact of inflation more effectively. Meanwhile, the Sindh government has announced advance salary and pension payments for Hindu employees ahead of Diwali.

According to a notification issued by the provincial government, salaries and pensions will be released by October 15 instead of November 1. The move aims to ensure that Hindu employees can celebrate the festival of Diwali with ease and joy. Officials stated that this decision reflects the provincial government’s commitment to supporting religious minorities and recognizing their cultural and religious festivals. Together, both measures—the federal rent allowance increase and the provincial advance payments—highlight the government’s efforts to provide financial relief and promote inclusivity among employees.