Govt Increases Housing Rent for Employees by 85%

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Govt Increases Housing Rent for Employees by 85%

The federal government has decided to increase the housing rent of government employees by 85 percent.
According to the details, the federal government has decided to increase the housing rent of government employees by 85 percent. The Ministry of Finance has approved the increase in the housing rent allowance.

The summary will be presented in the federal cabinet meeting for final approval.

Explanation

This is the house rent that will be received by all employees from one to twenty-two.

This will also include contract employees.

Govt Increases Housing Rent for Employees by 85% – Full Details

Govt Increases Housing Rent for Employees by 85%: Full Allowance Chart

In a significant development for public sector workers, the federal government has decided to increase the housing rent of government employees by 85 percent. This decision aims to alleviate the financial burden on employees facing rising accommodation costs across the country. The Ministry of Finance has formally approved the substantial increase in the House Rent Allowance (HRA), a move that will impact employees across all Basic Pay Scales (BPS).

This article provides a comprehensive overview of this decision and a detailed comparison of the House Rent Allowance over the years, including the rates effective from 2005, 2007, 2008, and the most recent applicable scale from 2018. Understanding these changes is crucial for every government employee to ascertain their revised entitlements.

Understanding the 85% House Rent Allowance Increase

The 85% increase is a substantial revision intended to align the allowance more closely with current market rental rates. The approval from the Ministry of Finance signifies the government’s commitment to supporting its workforce. This revision will apply to employees stationed in various cities, with different rates for Divisional Headquarters and other cities, reflecting the variance in living costs.

For more official information on fiscal policies, you can refer to the Ministry of Finance, Government of Pakistan website.

Comparative Chart of House Rent Allowance (2005-2018)

Below is a detailed table showing the progression of House Rent Allowance for federal government employees from BPS-1 to BPS-22. The table breaks down the allowance for “Other Cities” (traditionally 30% of the pay scale’s minimum) and “Divisional H/Qs” (45% of the pay scale’s minimum) across various effective dates.

BPS W.E.F 01-07-2005 W.E.F 01-07-2007 W.E.F 01-07-2008 W.E.F 01-07-2018
Other Cities (30%) Divisional H/Qs (45%) Other Cities (30%) Divisional H/Qs (45%) Other Cities (30%) Divisional H/Qs (45%) Other Cities (30%) Divisional H/Qs (45%)
BS-16452907433348911,3371,3372,006
BS-26602977593429111,3671,3672,051
BS-36833077853539421,4131,4132,120
BS-47043178103659721,4581,4582,187
BS-57253268343751,0021,5031,5032,255
BS-67463368583861,0291,5441,5442,316
BS-77673458823971,0591,5891,5892,384
BS-87973599174131,1001,6501,6502,475
BS-98313749564301,1461,7191,7192,579
BS-103601629894451,1871,7811,7812,672
BS-118944021,0294631,2351,8531,8532,780
BS-129474261,0894901,3071,9611,9612,942
BS-131,0104551,1615221,3942,0912,0913,137
BS-141,0404681,2305541,4762,2142,2143,321
BS-151,1345101,3055871,5662,3492,3493,524
BS-161,3135911,5156821,8182,7272,7274,091
BS-172,1429642,4631,1082,9554,4334,4336,650
BS-182,8071,2633,2281,4533,8735,8105,8108,715
BS-194,2781,9254,9202,2145,9048,8568,85613,284
BS-205,0752,2845,8372,6277,00510,50810,50815,762
BS-215,6252,5316,4702,9127,76411,64611,64617,469
BS-226,0172,7086,9203,1148,30412,45612,45618,684

Frequently Asked Questions (FAQs)

Q: What is the House Rent Allowance for federal government employees?

A: The House Rent Allowance (HRA) is a financial benefit provided by the government to its employees to cover the cost of rented accommodation. The amount varies based on the employee’s pay scale (BPS) and their place of posting (e.g., Divisional HQ or other cities).

Q: When will the 85% increase in housing rent allowance be effective?

A: The effective date for the implementation of the new 85% housing rent allowance will be announced in the official notification issued by the Ministry of Finance. Employees are advised to await the formal circular for the exact date.

Q: Does this increase apply to all provinces?

A: This decision has been made by the federal government and primarily applies to federal government employees. Provincial governments often follow federal precedents, but they will need to issue their own separate notifications for their respective employees.

Q: How is the House Rent Allowance calculated?

A: HRA is typically calculated as a percentage of the minimum of an employee’s Basic Pay Scale. For major cities (Divisional HQs), it is usually 45%, and for other cities, it is 30%. The recent 85% increase will be applied to these existing calculation frameworks.

Q: Where can I find the official notification for this increase?

A: The official notification will be issued by the Finance Division (Regulation Wing). It will be available on the official Ministry of Finance website and will be circulated to all federal ministries and departments for implementation.

Q: Will employees living in government-owned housing also receive this allowance?

A: No, employees who are provided with government-owned accommodation are generally not eligible for the House Rent Allowance. This allowance is specifically for those who arrange their own rented housing.

Q: Is the House Rent Allowance taxable?

A: Yes, like other allowances, the House Rent Allowance is considered part of an employee’s income and is subject to income tax as per the regulations set by the Federal Board of Revenue (FBR). For more details, consult the FBR’s official website.

Q: How does this increase compare to inflation?

A: The 85% increase is a significant step to help employees cope with inflation, which has substantially driven up rental costs. This revision aims to bridge the gap between the previous allowance and the current economic reality of the housing market.

Q: Will this increase affect my pension?

A: No, the House Rent Allowance is not part of the basic pay and is therefore not included in the calculation for pension benefits. Pension is calculated based on the last drawn basic pay of the employee.

Q: Who should I contact for discrepancies in my allowance?

A: For any issues or discrepancies regarding your House Rent Allowance, you should contact the accounts or human resources department of your respective ministry or division. They are responsible for implementing the new rates correctly in your salary.

Conclusion

The federal government’s decision to increase the housing rent of government employees by 85 percent is a welcome relief for countless individuals and families. This revision reflects a necessary adjustment to support public servants in managing their living expenses. By examining the historical data, employees can appreciate the scale of this increase and plan their finances accordingly. It is a critical step towards ensuring that the compensation for government employees remains fair and commensurate with prevailing economic conditions.

What are your thoughts on this allowance increase? Share your opinion in the comments below!

وفاقی حکومت نے سرکاری ملازمین کے ہاؤسنگ رینٹ میں 85 فیصد اضافے کا فیصلہ کرلیا۔
تفصیلات کےمطابق وفاقی حکومت نے سرکاری ملازمین کے ہاؤسنگ رینٹ میں 85 فیصد اضافےکا فیصلہ کر لیا ہے،وزارت خزانہ نے ہاؤسنگ رینٹ الاؤنس میں اضافے کی منظوری دے دی ہے

سمری حتمی منظوری کے لیے وفاقی کابینہ اجلاس میں پیش کی جائےگی۔

ان شاء اللہ

وضاحت

یہ ہاوس رینٹ ہی ہے جو ایک سے باٸیس تک کے تمام ملازمین کو ملے گا

اس میں کنٹریکٹ ملازمین بھی شامل ہوں گے.

Govt Increases Housing Rent for Employees by 85%
Govt Increases Housing Rent for Employees by 85%

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