The federal government has approved a major increase in the house rent ceiling for its employees, raising it by 85 per cent across all grades from BPS-1 to BPS-22.

According to an official notification issued by the Ministry of Housing and Works, following the federal cabinet’s approval, the revised rates will take effect from November 1, 2025.

The new rent ceiling rates were determined in consultation with the Finance Division, marking the first revision since September 28, 2021.

Officials said the hike was necessary as rising rents and rapid urbanisation in major cities — Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar — had made it increasingly difficult for government employees to secure suitable accommodation under the previous rates.

Under the Rules of Business 1973 (Schedule II, Rule 3(3), Serial No. 14), the Ministry of Housing and Works oversees the provision, acquisition, and leasing of government residential accommodations and offices.