Federal Government Increases House Rent Ceiling for Employees by 85% from November 1

Islamabad: The federal government has approved an **85% increase in the house rent ceiling** for government employees. The decision, recommended by the Ministry of Housing and Works, was approved through a summary circulated in the federal cabinet.

The **new house rent ceiling rates** will come into effect from **November 1, 2025**, and will apply to employees of federal ministries, divisions, and their subordinate offices across Pakistan, including major cities such as **Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta**.

According to the Ministry of Housing and Works, the increase has been applied **uniformly for all federal employees from Grade 1 to 22** to help ease the burden of rising residential costs.

This step is aimed at ensuring government employees can better manage their housing expenses amid increasing urban living costs.