The federal government has approved a significant 85% increase in the House Rent Allowance (HRA) for employees across all grades, from BS-1 to BS-22.
According to official reports on Thursday, the Ministry of Housing and Works proposed a uniform raise in the allowance, which has now been cleared by the federal cabinet.
The decision is expected to benefit hundreds of government employees, easing the financial strain caused by rising living costs. The revised allowance will come into effect after final circulation approval from the cabinet.
However, the move is projected to add an annual burden of Rs12 billion to the national exchequer.
