Islamabad, November 4, 2025 – In a major relief for federal government employees, the Ministry of Housing and Works has officially notified an 85% increase in the rental ceiling for hiring residential accommodation, effective November 1, 2025, following approval from the Federal Cabinet.
The decision, taken in consultation with the Finance Division, marks the first revision in over four years — the last being approved on September 28, 2021. The new rates apply across the board for employees from BS-1 to BS-22, ensuring uniform benefits for all tiers of government service.
The Ministry of Housing and Works, which manages office and residential accommodations for federal staff, explained that soaring rental prices in major cities such as Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar have made it increasingly difficult for employees to secure affordable housing. Rising inflation and population growth have sharply driven up private rental costs, necessitating this long-awaited revision.
Federal Minister for Housing and Works Mian Riaz Hussain Pirzada congratulated employees on the approval, calling it a “landmark step toward employee welfare.” He emphasized that the ministry had been pursuing this revision since last year to address the financial strain caused by escalating rents.
The minister added that the increase would also ease pressure on the Estate Office, particularly in Islamabad, where 17,400 government residences serve 43,000 registered applicants. He reaffirmed the ministry’s commitment to improving living standards for government employees amid rising housing market challenges.