Federal Government Announces 85% Increase in House Rent Allowance for Employees

ISLAMABAD: The federal government has announced a major financial relief package for civil servants, approving an **85% increase in the House Rent Allowance (HRA)** for all employees from **Grade 1 to 22**, whether permanent or on contract.

According to media reports, the **Finance Ministry** has already approved the proposal, which will soon be presented to the **federal cabinet** for final approval.

Under the new policy, the allowance will now be **calculated on the basis of the employees’ current basic pay**, replacing the **2008 pay scale** that was previously used.

Sources say that once approved, this measure will provide **significant relief to government employees** struggling with high rents and inflation. It is being described as **the largest increase in house rent allowance in recent years**, aimed at reducing the financial burden on public servants.

Meanwhile, the **Punjab government** has also issued **new guidelines for government employees regarding the use of social media**.