Federal government raises house rent ceiling for employees by 85pc
Business
The federal government has raised the house rent ceiling for employees by 85%, effective November 1, 2025, to address rising rents in major cities.
ISLAMABAD — The federal government has given a major relief to public servants by approving an 85% increase in the house rent ceiling for employees across all pay scales — from BPS-1 to BPS-22.
According to a notification issued by the Ministry of Housing and Works, the revised rates will take effect from November 1, 2025. The ministry stated that the new rent ceilings were finalized in consultation with the Finance Division and will initially apply to six major cities.
A spokesperson for the ministry said the decision was made to help employees cope with skyrocketing rents in large urban centers, adding that it would serve as a much-needed relief for thousands of government workers.
Federal Minister for Housing and Works Mian Riaz Hussain Pirzada welcomed the move, calling it a positive and timely step for employees’ welfare. He reiterated the ministry’s commitment to improving the living conditions and well-being of government workers.
Currently, official figures show that 17,400 government residences exist in Islamabad, while over 43,000 registered applicants are still waiting for official accommodation.
