🏠 Big News for Federal Employees: House Rent Limits Just Got Higher!

📅 Effective from November 1, 2025

Great News for Federal Government Employees

The government has finally listened to the struggles of its workers and announced a massive increase in house rent limits.
If you're a federal employee trying to find affordable housing in cities like Islamabad, Lahore, Karachi, or Rawalpindi, this update is exactly what you've been waiting for.

📊 Key Highlights

• 85% Average Increase

• 6 Major Cities Covered

• 22 BPS Grades Included

🏢 What’s Changed?

The Ministry of Housing and Works has officially announced new rent ceiling rates for federal employees across all Basic Pay Scale (BPS) grades — from BPS-1 up to BPS-22.

This increase is huge — roughly 85% higher than the old rates!

Why the change?
Rent prices in Pakistan have skyrocketed over the years, but government rent ceilings remained outdated. Many employees were paying extra from their pockets just to live decently. This update finally aligns housing support with real market conditions.

Example:
In Islamabad, a BPS-22 officer’s rent ceiling jumped from Rs. 98,444 to Rs. 182,121 — an increase of over Rs. 83,000 per month!

📄 Official Government Notification

The official notice was issued on November 4, 2025, by the Ministry of Housing and Works.

📥 Download the Official Rent Ceiling Notification (2025)

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Continuation of the official rent ceiling notification — Page 1.

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Continuation of the official rent ceiling notification — Page 2.

🌆 Who Benefits from This?

This policy applies to all federal government employees working in the following major cities:

• Islamabad – The capital city where most federal offices are located

• Rawalpindi – Neighboring Islamabad with similar rent challenges

• Lahore – Pakistan's cultural and administrative hub

• Karachi – The economic capital with the highest rents

• Quetta – Capital of Balochistan

• Peshawar – Capital of Khyber Pakhtunkhwa

🗓️ When Does It Start?

The new rates became effective on November 1, 2025.
If you’re renting a new house now or paying extra out of your pocket, you can immediately apply the new ceilings.

“This feels like real relief after years of struggle. Rents doubled, but our ceilings stayed the same. Finally, someone listened.”

⚙️ How Will It Work?

The official memorandum outlines where these new limits apply:

• New Rentals: For any house hired after November 1, 2025

• Existing Rentals: Employees already paying extra can now adjust rent up to the new limit

• Self-Hired Houses: Houses arranged directly by employees also qualify

• Expired Leases: Once your current lease ends, the new ceilings apply automatically

🔑 Important Points to Remember

• Increase ranges from Rs. 13,004 (BPS-1) to Rs. 182,121 (BPS-22) in Islamabad

• Other specified cities received proportional increases (~85%)

• Departments must manage this within existing budgets (no new funds)

• Policy follows the Accommodation Allocation Rules, 2002

💰 The Budget Question

You might wonder: Where will the extra money come from?

The government clarified that no additional funds will be provided by the Finance Division.
Each ministry and department must adjust internally to manage the higher rent ceilings during FY 2025–2026.

🏡 Why This Matters

Housing is one of the biggest expenses in Pakistan’s major cities.
For government employees, limited rent ceilings made it harder to find affordable, safe housing.

Before this revision, many employees had to:

• Live far from work to find affordable housing

• Spend hours commuting every day

• Pay huge personal contributions from salaries

• Compromise on quality and safety

Now, with the 85% increase, employees can:

✅ Find better-quality housing near workplaces
✅ Reduce financial stress on families
✅ Live in safer, more comfortable neighborhoods
✅ Save more money monthly
✅ Work with peace of mind

“This isn’t just about money — it’s about dignity, stability, and respect for public service.”

🏛️ Official Authorization

The notification was signed by Yawar Hussain Rana,
Section Officer (Policy/E-III), Ministry of Housing and Works.

It received formal approval from both the Cabinet Division and Finance Division,
under reference O.M. No. 4(9)R-14/2007, dated September 25, 2025.

Copies were circulated to:

• President’s Secretariat

• Prime Minister’s Office

• All Federal Ministries and Divisions

• Press Information Department

• Housing & Works Estate Offices (Islamabad, Lahore, Karachi, Peshawar, Quetta)

📋 What Should You Do Next?

If you’re a federal employee:

1. Contact your department’s administration or housing section.

2. Check your BPS-based rent ceiling under the new notification.

3. Update your lease if you’re paying extra from your pocket.

4. Keep a copy of the official document for records.

5. Visit the Ministry of Housing & Works Website for updates.

💭 Final Thoughts

No government policy can solve every issue overnight —
but this one is a major step in the right direction.

For thousands of government employees, this 85% increase provides real relief and restores confidence in government support.

It shows the administration understands the challenges its workforce faces and is adapting to economic realities.

With fair implementation, these revised rent ceilings can significantly improve living standards and morale among Pakistan’s federal employees.

🏛️ For Official Updates and Verification

Visit the Ministry of Housing & Works official website
or contact your department’s administration office for the latest circulars.

📄 Office Memorandum No. F. 4(8)/92-Policy | Dated November 4, 2025