Govt employees get increase in house rent allowance

In a major relief for thousands of government employees, the federal government has approved an unprecedented 85 percent hike in “Housing Rent Allowance (HRA).”

According to sources, the Finance Ministry has already approved the summary, which will now be presented before the federal cabinet for final approval.

This decision will benefit employees from Grade 1 to Grade 22, including both permanent and contract staff working in federal departments.

The increase will be calculated based on the current basic pay, as the existing allowance was still being calculated according to the 2008 basic pay scale.

Officials explained that the move aims to ease the financial pressure on employees who are struggling with high housing costs amid record inflation. Once the cabinet gives its final approval, the new allowance will be implemented nationwide.

A senior finance ministry official said, “This decision will make a real difference to employees struggling with rent costs,” calling the hike “a long-overdue reform.”

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