Enhancement of Rental Ceiling for Hiring 2021 Federal Employees

Government of Pakistan, Ministry of Housing & Works has issued a letter on 30-07-2021 to Finance Division regarding Enhancement of Rental Ceiling for Hiring 2021 Federal Employees.  The details of the same are as under:

Enhancement of Rental Ceiling for Hiring 2021 Updates


The undersigned directs to refer to the Finance Division O.M No.4 (9) R-14/2007-360, dated 05-07-2021 on the subject and say that:-

  • As per clause 10(1) of the Islamabad Rent Restriction Ordinance, 2001 “The Rent of residential as well as a non-residential building shall stand automatically increased at the end of every 03 years of its tenancy by 25% of the rent already being paid by tenant”. However, it has already clarified in para 3 of the draft summary for the Prime Minister’s that it is almost impossible for the government employees to hire a reasonable private house at Islamabad/Rawalpindi and other stations within existing rental ceilings forcing them to pay the large differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners. Therefore, an increase of 25% on the actual rent rate corresponds to almost 50% or even more increase on existing government rates.
  • As per the economics survey 2019-20 an increase of 8.2% inflation they recorded in 2018-1 and 7.1% in the year 2019-20 on account of Housing, Water, Electricity, Gas, and other fuels. The said inflation has an impact on the rates of land and buildings resulting in an increase in the rates of rent.


Market Survey by Pak.PWD and Proposing of 44% Increase in Hiring


2.  The Pak. PWD has conducted market surveys in Islamabad and other specified cities of Pakistan. It has proposed a 44% increase in the rental ceiling.

(copy enclosed)

3. In view of the above Finance Division is once again requested to accord concurrence to the draft summary for the Prime Minister. The same they forwarded vide this Ministry’s letter dated 02-06-2021.


Updates of Enhancement of Rental Ceiling for Hiring 2021 Federal Employees


The request of Galaxy World to Increase House Rent Allowance


It is a good proposal and the Finance Division should take action on this. The reason is clear due to the increase in rents of the houses in Rawalpindi/Islamabad and other specific cities. It is also a request to the Finance Division that not only Hiring they should increase but also the House Rent Allowance. The rates of HRA are minor as compared to the rents of the houses. Government increases House Rent Allowance in 2018 last time. The HRA, the Government should increase all over Pakistan. This forum requests the Govt to keep in mind the difficulties of other employees too. The government knows it is not possible for an employee to rent a House even in a small city in just 2000/- or so. I hope Finance Division will also take steps to enhance the HRA in all cities.


Latest Updates of Rental Ceiling of Hiring 


According to the various news, the Finance Division has approved a 25% increase in hiring. Finance Division has written a letter to the PM Office for its approval. If the prime Minister of Pakistan approves it then the expected rates of 2021 hiring will be as under:





Update as on 20-08-2021


There is another news update on 20th Aug 2021 as per Mr. Rehman Bajwa. Finance Secretary today on 20.08.2021has approved the proposal of a 44% increase in House hiring.
Now Ministry of Housing and Works will move a formal summary for Prime Minister through Finance Division.

Latest Updates of Hiring as on 24-08-2021

According to the latest updates of hiring as on 24-08-2021, there is a proposal of a 44% increase in hiring. The Finance Division has submitted a letter on 24th Aug 2021 to the Ministry of Housing and Works. (Special Thanks Mr. Waheed Buttar)
Latest Updates of Rental Ceiling

Summary Submitted to the Honourable Prime Minister for 44% 

Ministry of Housing and Works has submitted a summary to increase the Rental Ceiling @ 44%. After approval of the same by the PM of Pakistan, the concerned Ministry will issue the Notification for Hiring. 

An increase of 50% in the rental ceilings across all grades was approved and notified on 25.06.2018 (Annex-I), Since then the rent of private houses has escalated in the market due to the influx of population towards big cities, it is almost impossible for the government employees to hire a reasonable private house at Islamabad/Rawalpindi and other stations within the existing rental ceilings, forcing them to pay the differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners.

Special Thanks: Mr. Altaf Hussain Abbasi


Summary Letter for Hiring


Detail of Hiring Rates 2021 Expected


Updates of Hiring Raise as on 11-09-2021


According to the Daily 92 News, the Prime Minister of Pakistan has signed/approved the summary for a 44% increase in the rental ceiling. This news may be true or not as it is a newspaper report. If the news is true then it will be good news for the Federal employees of specific cities of Pakistan.  As soon as I get the approved summary of the same, I shall upload the same at this post for the information of employees. 


News Enhancement of Rental Ceiling for Hiring 2021


Updates as on 12th Sep 2021


The online Geo Newspaper also published the same news of 44% approval of rental ceiling for hiring for the federal employees of specific cities.  According to the same online newspaper, Prime Minister Imran Khan has approved the summary. Let’s wait for the confirmed copy of the same. 


Special Thanks: Mr. Rafiq Ahmad Buriro



The daily Jang dated 13-09-2021 mentions that the Prime Minister of Pakistan has sent this summary to the Federal Cabinet for approval. After the approval of the same from FC, the concerned department will issue the Notification. 



Summary to Federal cabinet


Latest News of Hiring 20-09-2021


According to the latest news as per DAWN TV Channel, the PM has called the Federal Ministers meeting on 21-09-2021 and there the agenda of the Enhancement of Hiring is also included in that meeting. 


Special Thanks: Mr. Asad Ahmed Baig 


raising hiring


The Federal Cabinet meeting started at 1300 HRS on 21st Sep 2021. Hope for the best regarding the 44% raising in hiring amount. 



Updates as on 21-09-2021 (Congratulations)


According to the Federal Minister of Information, Fawad Ch, the cabinet has approved the 44% increase in Rental Ceiling for Hiring. The Federal Government employees will soon get this increased allowance. Congratulations to the employees of the Federal Government for specific cities. 


Approval of 44% Hiring

Enhancement of Rental Ceiling for Hiring 2021 FG



Notification of Increase in Hiring Rates 2021 

Ministry of Housing and Works issued a Notification on 28-09-2021 in connection with the Increase in Hiring Rates 2021. 
Special Thanks: 
  • Mr. Altaf Hussain Abbasi
  • Mr. Majid Jahangir 
  • Mr. Awais Ahmad 
  • Mr. Nadeem Gujjar
Enhancement of Rental Ceiling for Hiring 2021
Rental ceiling Notification 2021
Enhancement of Rental Ceiling for Hiring 2021 Notification

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11 thoughts on “Enhancement of Rental Ceiling for Hiring 2021 Federal Employees

  1. With due respected, Today I making one of my official after due drawn Bill from 1988 but I have less information about
    house rent ceiling, if you have complete details of House rent ceiling w.e.f 1988 to 2022 so send me.

  2. Respected Sir/Madam,

    kya parents ka gher self rent me ata hai?
    employee ko gher hired kerwana
    walida owner hain unka house hired kerwaya
    kya yeh self house hota ya nai?
    waiting ..

  3. Salam

    What is difference between house rent allowance and rental ceiling allowance? Is there proper definitions of these in official documents/website?
    Please guide

    1. What is House Rent Allowance?

      House Rent Allowance is granted to every employee who is not residing in any Government residence. HRA is granted all over Pakistan. In big cities (Lahore, Multan, Gujranwala, Sargodha, Karachi, Quetta, Rawalpindi etc, it is 45% of the initial pay of revised pay scales 2017 plus a 50% Increase. While in other cities it is 30%.

      What is Rental Ceiling of Hiring?

      While Hiring is granted only in these six cities:

    2. Rawalpindi
    3. rental Ceiling of Hiring is paid to the owner of the house or the owner of the house can give an attorney to the employee. There are two types of hiring one is rental hiring and other is self hiring. If the employees has his own house he will get self hiring and if he lives in a rented house then he will get rental hiring. amount is same for both. Amount of hiring changes from pay scale-wise. In Islamabad, the rates of hiring are more than other 5 cities. In some departments in these cities hiring is granted on the joining while in some other departments the employee applies for the hiring and his turn may come in one year, two year or so on depending on the list of the employees already applied. The employees still get HRA until his hiring approves. A few employees does not apply for hiring and they continue to get HRA in these cities too.

  4. Respected Madam/Sir,

    It is submitted that the Government employees working in BS-16 are deprived of late sitting/overtime charges on the ground that they are gazetted officers whereas at the time of grant of house requisition BS 16 are cubed with BS 14 and 15. It is requested that the voice may be raised for cubing BS 16 with BS 17 and 18 for grant of requisition please.

  5. Another clear cut example of dual faces and double treatment for Govt servants. The servants for whom this huge increase has been announced are not much in strength and on the other hand the major junk is not given anything. Is it not a joke that a BS-16 officer is getting HRA as Rs. 4091/-, is it not a mockery, in this amount one can not get even a wash room in any city. It is matter with a BS-16 officer then what about BS 1 to 15, are they not human. Why not every Govt own them, this increase has created a major difference between two type of govt servants. On one hand govt is planning to remove disparity in salaries of govt servants on the other hand had created another major anomaly. Our humble request to the Govt is please do not promote anymore anomalies and HRA and other allowances of all Govt servants may also be increased realistically as they are also human, have families and many other liabilities so they need attention and special attention for these govt servants too


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