In a significant move aimed at addressing the rising cost of housing for government staff, the Finance Division has recommended a uniform 85% increase in the monthly rental ceiling for all federal employees, regardless of grade.

The proposal comes after the Ministry of Housing and Works initially suggested a tiered increase based on employee grades, ranging from 60% to 100%. Under that earlier plan, employees in grades 1 to 10 were set to receive a 100% increase, those in grades 11 to 16 a 75% hike, grades 17 to 19 a 65% boost, and the highest grade officers in grades 20 to 22 a 60% raise.

However, sources within the government confirmed that the Finance Division has formally communicated its preference for a flat 85% hike across all categories of federal staff. Officials say this uniform approach aims to simplify implementation and ensure fairness in addressing the housing needs of government employees.

The Ministry of Housing and Works is now expected to prepare and forward a final summary of the revised proposal to the federal cabinet for formal approval.

The revision of rental ceilings has been long overdue, with the issue delayed for several years due to procedural hurdles. To inform the decision-making process, three separate housing cost surveys were conducted in recent years. These included assessments by the Estate Office, the Public Works Department (PWD), and the Pakistan Bureau of Statistics (PBS) — all aimed at evaluating the current rental market in Islamabad and other key cities.

The rising cost of living, particularly in urban centers, has added pressure on the government to adjust the rental ceilings, which had remained stagnant despite inflation and soaring housing costs.

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If approved, this move could bring much-needed financial relief to thousands of federal employees across the country, helping them better manage their housing expenses amid a challenging economic environment.