Govt Increases Rental Allowance
In a significant move to address the rising cost of living, the govt increases rental allowance for employees in grades 1 to 22. This decision, effective immediately, impacts employees working in six major cities. The adjustment aims to provide financial relief and support for employees facing high rental costs in these urban areas.
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Overview of the Govt Increases Rental Allowance
The recent policy change comes as part of the government’s broader efforts to improve the financial well-being of its employees. The increase in rental allowance is designed to help offset the burden of rising housing costs, which have been a growing concern in key metropolitan areas.

Affected Cities
The rental allowance increase applies to employees stationed in the following six cities:
- Islamabad
- Lahore
- Karachi
- Rawalpindi
- Faisalabad
- Multan
These cities have been selected due to their high living costs, making the adjustment particularly crucial for employees working there.
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Details of the Govt Increases Rental Allowance
Grade | Previous Allowance (PKR) | New Allowance (PKR) | Increase (PKR) |
1 | 10,000 | 15,000 | 5,000 |
2 | 12,000 | 17,000 | 5,000 |
3 | 14,000 | 19,000 | 5,000 |
4 | 16,000 | 21,000 | 5,000 |
5 | 18,000 | 23,000 | 5,000 |
6 | 20,000 | 25,000 | 5,000 |
7 | 22,000 | 27,000 | 5,000 |
8 | 24,000 | 29,000 | 5,000 |
9 | 26,000 | 31,000 | 5,000 |
10 | 28,000 | 33,000 | 5,000 |
11 | 30,000 | 35,000 | 5,000 |
12 | 32,000 | 37,000 | 5,000 |
13 | 34,000 | 39,000 | 5,000 |
14 | 36,000 | 41,000 | 5,000 |
15 | 38,000 | 43,000 | 5,000 |
16 | 40,000 | 45,000 | 5,000 |
17 | 42,000 | 47,000 | 5,000 |
18 | 44,000 | 49,000 | 5,000 |
19 | 46,000 | 51,000 | 5,000 |
20 | 48,000 | 53,000 | 5,000 |
21 | 50,000 | 55,000 | 5,000 |
22 | 52,000 | 57,000 | 5,000 |
Implications of the Govt Increases Rental Allowance
Financial Impact
- The increase in rental allowances is expected to have a positive financial impact on employees, particularly in high-cost cities. This adjustment will help alleviate some of the financial pressures associated with housing and support employees in maintaining a better quality of life.
Administrative Adjustments
- Government departments will need to update their payroll systems to reflect the new rental allowance rates. Employees should check with their HR departments to ensure that their allowances are adjusted accordingly.
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Conclusion
- The recent increase in rental allowances for government employees in grades 1 to 22 represents a significant step towards addressing the challenges posed by high living costs in major cities. By enhancing financial support for employees, the government aims to foster a more stable and supportive working environment.
- This move is expected to be well-received by employees, as it acknowledges the financial strain of high rental costs and provides tangible relief. As cities continue to grow and living costs rise, such adjustments play a crucial role in maintaining employee satisfaction and well-being.
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FAQs
- When will the new rental allowances take effect?
- The new rental allowances are effective immediately from the date of the announcement.
- How can employees verify their new rental allowance?
- Employees should contact their HR departments to confirm the updated rental allowance and ensure that it has been correctly implemented in their payroll.
- Will this increase apply to employees in other cities?
- No, the increase in rental allowance is currently limited to employees stationed in the six specified cities.
- Are there any other benefits being introduced alongside the rental allowance increase?
- The current announcement focuses solely on the increase in rental allowances. Any additional benefits or changes will be communicated separately.
- How often will rental allowances be reviewed?
- The government reviews allowances periodically based on changes in living costs and other economic factors. Future adjustments will be announced as necessary.