Cabinet asked to increase rental ceiling for federal employees by up to 125pc

ISLAMABAD:  The Ministry of Housing and Works has submitted a summary to the federal cabinet seeking a significant increase in the house rental ceiling for federal government employees, sources revealed on Tuesday.

The summary recommends an increase ranging from 60% to 125% across six major cities, including Islamabad, Rawalpindi, Karachi, Lahore, Peshawar, and Quetta. 

Sources said that for employees in grades 1 to 6, a 125% increase has been proposed. For grades 7 to 10, a 100% increase, while for grades 11 to 22, a 60% hike has been suggested. 

Proposed rental ceilings for Islamabad 

Previously, the federal government had increased the house rental ceiling for hiring of residential accommodation in federal ministries/divisions/attached department/subordinate offices at Islamabad, Rawalpindi, Karachi, Lahore, Quetta and Peshawar in July 2021.

Meanwhile, another summary was presented to the cabinet on Tuesday for increasing the salaries of federal ministers, advisers, ministers of state, and special assistants by 150 per cent. 

This development follows the prime minister’s recent approval of a significant salary raise for parliamentarians despite public criticism. 

During a recent National Assembly Standing Committee on Finance meeting, government and opposition members showed rare unity by supporting the salary hike. The committee, chaired by Speaker Ayaz Sadiq, approved a monthly increase of Rs519,000 for each National Assembly member and senator. 

Previously, lawmakers received Rs180,000 per month. Although an initial proposal suggested raising the monthly salary to Rs1 million, Speaker Ayaz Sadiq rejected the figure, agreeing instead to Rs519,000. 

The government defended the increase by citing salary comparisons with federal secretaries. Sources confirmed that parliamentarians received their revised January salaries following the prime minister’s approval. 

Earlier, on December 16, 2024, the Punjab Assembly approved exorbitant salary increases for its members and officials, raising concerns amid economic challenges in the province.