I shall mention here in detail of increase in House Rent Allowance and Budget 2025-26. The Federal Government of Pakistan is announcing the Fiscal Budget 2025-26 during the 1^st week of June 2025, and employees have many demands that the Government should fulfil. One of the major demands of the Government employees is to enhance the rates of House Rent Allowance.

Increase in House Rent Allowance and Budget 2025-26 (demand of employees)

If we go to the past, the Government notified an Increase in HRA with effect from 1^st July 2018 after ten years. Before this Government increased HRA in 2008. At this time, the employees are getting House Rent Allowance at 30% and 45% initial of the Revised Pay Scales 2008, plus a 50% increase in HRA in 2018.

Let’s check the current rates of House Rent Allowance in big cities and small cities/and rural areas.

Current HRA in Big Cities / Special Cities

Current HRA in Small Cities / Rural Areas

Comparison of HRA and Rates of Houses on Rent 2025

If we look at the above rates of HRA, these are minor as compared to the current rates of Houses on Rent in Big cities and small cities. The rents of houses vary from place to place and location to location in the same city and other cities. In the same cities, the rates of rent of houses differ even more than 100%. For example, if we take examples in Lahore, in common areas, the rates of a House on Rent for 5 Marla single-story house are nearly 20,000/-, while in the same city, in certain areas, the rates for the same area house are more than 50,000/- per month. While the employees are getting HRA ranging from Rs. 2006/- to 8715/- per month from BPS-01 to BPS-18. You can imagine how much the difference is between the HRA amount the employees get and the actual amount paid by the Government employees for the house on rent.

Keeping in view the above facts, the Government should increase House Rent Allowance minimum of 100% on the initial of the revised pay scales 2022. In this way, they will get some relief.

How much HRA employees will get if the Government grants HRA on the initial of the 2022 Pay Scales?

If we look at the above rates, these rates are also too less than the actual amount of house rent the employees pay. So the Government should increase the minimum by 100% of the initial Revised Pay Scales 2022.

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