The Ministry of Housing and Works has issued a new rental ceiling notification for federal government employees, marking a significant adjustment in house rent limits across key cities including Islamabad, Rawalpindi, Lahore, Karachi, Quetta and Peshawar.
The updated rates have been enforced with immediate effect.
According to the latest office memorandum released by the Ministry of Housing and Works, the revision aims to ease the financial pressure on employees living in rented accommodations. The new rental ceilings vary according to job grades and city categories.
In Islamabad, the rent ceiling for employees in Grades 1 to 2 has been fixed at Rs. 13,000, while in other cities, it stands at Rs. 12,193. For Grades 3 to 6, the limit in Islamabad is Rs. 20,313 and Rs. 17,860 in other regions. Similarly, employees in Grades 7 to 10 can now claim up to Rs. 30,346 in Islamabad and Rs. 27,162 in other major cities.
The new rates show a notable increase for senior positions as well. For Grades 14 to 16, the ceiling in Islamabad has been set at Rs. 57,507, while in other cities, it is Rs. 50,198. Officers in Grades 17 to 18 will now receive a rental ceiling of Rs. 76,122 in Islamabad and Rs. 66,411 elsewhere.
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Grade 20 officers will be eligible for Rs. 127,095 in the capital and Rs. 92,296 in other locations. The highest category, Grade 22, has been capped at Rs. 182,121 for Islamabad and Rs. 165,076 for other cities.
The notification further states that the revised rent ceiling will apply to all new housing allotments. Employees renting homes privately may have their rent adjusted in line with the owner’s demand, within the approved limit.



