Govt Employees Get a Big Salary Boost

In a major relief for federal government employees facing rising housing costs, the federal cabinet has approved an 85 percent increase in the rental ceiling for government employees from BS-1 to BS-22 in Islamabad and five other major stations, including Rawalpindi, Lahore, Karachi, Peshawar, and Quetta. Sources told ProPakistani that the Ministry of Housing and Works proposed the increase to the cabinet, recommending an 85 percent hike in the rental ceiling for government employees. The Ministry, which is responsible for providing accommodation to federal government officers and staff, noted that rents in major urban centers have risen sharply in recent years due to inflation and population growth. The last revision of rental ceilings was approved by the Federal Cabinet on September 28, 2021. The Ministry highlighted that government employees are struggling to find suitable housing within the existing rental ceilings and are often forced to pay the difference from their own pockets to meet market demands. The situation has been further compounded by a severe shortage of government-owned accommodation. Acknowledging these challenges, the Ministry of Housing took up the matter with the Finance Division, which endorsed the proposal to raise the rental ceilings by 85 percent across the board. “In view of the current market conditions and the Finance Division’s concurrence, it is proposed that the rental ceiling for hiring of residential accommodation be enhanced by 85 percent with immediate effect,” the ministry stated. The Prime Minister has approved the Ministry’s request to place the proposal before the Federal Cabinet through circulation under Rule 17(1)(b) of the Rules of Business, 1973. Following cabinet approval, the revised ceilings will ease the financial burden on federal employees and bring official housing allowances closer to prevailing market rents.