Federal employees get 45pc bump in house rent

ISLAMABAD: The federal government has increased by 45pc the house rent ceiling for all its employees — from grade 1 to 22 — for six major cities, with the highest increase being seen in the federal capital.
According to a notification issued by the Ministry of Housing and Works, the enhanced rental ceiling for hiring of residential accommodation for staff and officers of federal ministries, divisions, attached departments and sub-ordinate offices will be applicable in Islamabad, Rawalpindi, Karachi, Lahore, Quetta and Peshawar.
Under the revised rates, the rental ceiling for grade 22 employees has been increased to Rs142,743 per month for Islamabad and Rs125,989 per month for all other cities (the four provincial capitals and Rawalpindi) from the existing rate of Rs98,444 and Rs89,230 per month, respectively.

The house rent rate for grade 21 government servants has been increased from Rs82,261 per month to Rs119,278 for Islamabad and from Rs71,107 to Rs98,378 per month for other cities.
Likewise, the rental ceiling for grade 20 has been jacked up to Rs99,615 from Rs68,700 per month for Islamabad and from Rs59,079 to Rs82,696 per month for other cities.
Grade-19 officials would be entitled to Rs79,320 and Rs65,542 per month for Islamabad and other cities respectively from their existing rates of Rs54,704 and Rs46,816 per month.
Meanwhile, for grades 17 and 18, the rental ceiling has been fixed at Rs59,669 for Islamabad and Rs49,808 for other cities from previous rate of Rs41,147 and Rs35,898, respectively.
For employees of grade 14 to 16, the rental rate for Islamabad has been set at Rs45,073 per month and Rs37,665 per month for other cities against Rs31,085 and Rs27,134 per month at present respectively.
Grade 11-13 officials would be allowed to draw up to Rs35,878 per month in Islamabad and Rs30,815 per month in other cities against their existing rates of Rs24,744 and Rs21,462 per month.
The rental ceiling has also been increased to Rs23,784 and Rs20,112 per month for Islamabad and other cities for the employees of grades 7 to 10, respectively, from their existing rates of Rs16,403 and Rs14,682.
The employees in grades 3 to 6 would now get Rs15,921 and Rs13,230 per month in Islamabad and other five cities when compared to previous rates of Rs10,980 and Rs9,654.
The rental for grade 1 and 2 employees would now be allowed at Rs10,192 per month in Islamabad and Rs9,590 per month in other cities from existing rate of Rs7,029 and Rs6,591 per month, respectively.
An official said the revised rates had been notified on the basis of market surveys and representations made by various segments of government servants.
The higher rental rates would be applicable to all fresh hires, as well as cases where the allottee or occupant is required to pay difference of rent to the owner out of his/her own pocket.

“In such a case, the rent may be increased up to the owner’s demand as indicated at the time of hiring or the occupant’s revised rental ceiling whichever is less.”
The enhanced rates are also applicable to houses hired by the government servants under Accommodation Allocation Rules, 2002 or subsequent decentralised system of house rent, notified on July 31, 2004, for which leases stood expired.
In such cases, the lease agreement would be executed with the owners on the basis of the current rental assessment, the occupant’s revised rental ceiling or the owners’ demand, whichever is less.
Published in Dawn, September 23rd, 2024