The Ministry of Housing and Works has formally issued a notification announcing an 85% increase in the rental ceiling for all federal government employees from Grade 1 to 22, effective from November 1, 2025.
According to the notification signed by Section Officer Rana Yawar Hussain, the increase will apply to employees serving in all ministries and divisions, which will adjust the revised ceilings within their existing 2025–26 budgets, without additional funds from the federal exchequer.
After the revision, the rental ceiling for Grade 1–2 employees in Islamabad has been fixed at Rs. 13,004 and Rs. 12,193 for other cities. For Grade 3–6 employees, the ceiling will now be Rs. 20,313 in Islamabad and Rs. 17,860 elsewhere.
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Federal Minister for Housing and Works Mian Riaz Hussain Pirzada congratulated all government employees, stating that “employee welfare is our top priority.”
