The Ministry of Housing and Works has officially issued a notification announcing an 85% increase in the rent ceiling for federal government employees, effective from November 1, 2025.
The new rates were approved after consultation with the Finance Division following the federal cabinet’s approval.
Previously, rent ceilings were last revised on September 28, 2021. This time, an overall increase of 85% has been recommended for all federal employees from BS-1 to BS-22.
According to the Ministry, this process will be implemented in six major cities: Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar. Rapid increases in rent and the growing urban population have made it difficult for government employees to secure suitable housing under the previous rates.
Federal Minister for Housing and Works, Mian Riaz Hussain Pirzada, congratulated all federal employees on this important announcement. He stated that employee welfare remains a top priority and emphasized that the government is increasing the rent ceiling to ease the financial burden on staff.
He further noted that the change will also reduce the load on the State Office, particularly in Islamabad, where around 17,400 government housing units exist, while approximately 43,000 registered applicants are waiting for accommodation.
The Ministry of Housing and Works remains committed to providing facilities and resolving housing issues for federal employees.
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