Last Updated on October 12, 2025 by Galaxy World
I am sharing the latest News Updates Increase in House Rent Allowance (HRA) 2025 @ 85%. There is news to increase HRA for the Federal Government employees. The Daily Samaa, the Daily Jang, the Daily Express, and many other newspapers, as well as News Channels, broadcast this news of HRA Increase on 11th October 2025 and 12th October 2025. The details are as follows:
News Updates Increase in House Rent Allowance (HRA) 2025
As per the news, the Finance Division has approved an 85% increase in HRA for the Federal Government employees. As per the news, the Federal Cabinet will finally approve the House Rent Allowance increase. Some people say that it is a Rental Ceiling of Hiring Increase 2025 that the Finance Division has already moved for the final approval of the Prime Minister of Pakistan.
Clarification
There is also the proposal of an 85% increase in the rental ceiling for hiring in 2025. But some say that it is the House Rent Allowance, not the rental ceiling of hiring. They take the point that the news says that the employees are getting HRA on the basis of the 2008 Basic Pay Scales. If we look at this point, they are right. It is HRA that is on the basis of the Basic Pay Scales 2008, while the Rental Ceiling of Hiring is revised in 2021, which is not based on any Basic Pay Scales. If we take 85% which is for the rental ceiling of hiring, it may be for the HRA, as in 2018, there was a 50% increase in HRA as well as hiring rates. Let s wait for further clarification from the Finance Division in the coming days.

On the Basis of the Current Basic Pay Scales 2022
The news also says that the HRA will be on the basis of Revised Pay Scales 2022 instead of Basic Pay Scales 2008, and there is a proposal for an 85% increase. The clear point on the HRA increase for 2025 will be received in the coming days. We’ll get the clarification about the HRA or Rental Ceiling of Hiring.

Current Rates of House Rent Allowance
Currently, the employees are getting HRA on the initial 2008 Basic Pay Scales, plus 50% increase HRA in 2018. The rates are 30% and 45% of the initial 2008 Pay Scales. In big cities, the employees get HRA @ 45% while in other cities, the rates of HRA are @ 30%. Let’s see the table of the HRA that the employees of BPS-01 to BPS-22 are getting.
Rates of HRA in Big Cities
| BPS | Initial Basic Pay | 45% HRA | 50% Increase | Total |
| 1 | 2970 | 1337 | 668 | 2005 |
| 2 | 3035 | 1366 | 683 | 2049 |
| 3 | 3140 | 1413 | 707 | 2120 |
| 4 | 3240 | 1458 | 729 | 2187 |
| 5 | 3340 | 1503 | 752 | 2255 |
| 6 | 3430 | 1544 | 772 | 2315 |
| 7 | 3530 | 1589 | 794 | 2383 |
| 8 | 3665 | 1649 | 825 | 2474 |
| 9 | 3820 | 1719 | 860 | 2579 |
| 10 | 3955 | 1780 | 890 | 2670 |
| 11 | 4115 | 1852 | 926 | 2778 |
| 12 | 4355 | 1960 | 980 | 2940 |
| 13 | 4645 | 2090 | 1045 | 3135 |
| 14 | 4920 | 2214 | 1107 | 3321 |
| 15 | 5220 | 2349 | 1175 | 3524 |
| 16 | 6060 | 2727 | 1364 | 4091 |
| 17 | 9850 | 4433 | 2216 | 6649 |
| 18 | 12910 | 5810 | 2905 | 8714 |
| 19 | 19680 | 8856 | 4428 | 13284 |
| 20 | 23345 | 10505 | 5253 | 15758 |
| 21 | 25880 | 11646 | 5823 | 17469 |
| 22 | 27680 | 12456 | 6228 | 18684 |
Rates of HRA in Other Cities
| BPS | Initial Basic Pay | 30% HRA | 50% Increase | Total |
| 1 | 2970 | 891 | 446 | 1337 |
| 2 | 3035 | 911 | 455 | 1366 |
| 3 | 3140 | 942 | 471 | 1413 |
| 4 | 3240 | 972 | 486 | 1458 |
| 5 | 3340 | 1002 | 501 | 1503 |
| 6 | 3430 | 1029 | 515 | 1544 |
| 7 | 3530 | 1059 | 530 | 1589 |
| 8 | 3665 | 1100 | 550 | 1649 |
| 9 | 3820 | 1146 | 573 | 1719 |
| 10 | 3955 | 1187 | 593 | 1780 |
| 11 | 4115 | 1235 | 617 | 1852 |
| 12 | 4355 | 1307 | 653 | 1960 |
| 13 | 4645 | 1394 | 697 | 2090 |
| 14 | 4920 | 1476 | 738 | 2214 |
| 15 | 5220 | 1566 | 783 | 2349 |
| 16 | 6060 | 1818 | 909 | 2727 |
| 17 | 9850 | 2955 | 1478 | 4433 |
| 18 | 12910 | 3873 | 1937 | 5810 |
| 19 | 19680 | 5904 | 2952 | 8856 |
| 20 | 23345 | 7004 | 3502 | 10505 |
| 21 | 25880 | 7764 | 3882 | 11646 |
| 22 | 27680 | 8304 | 4152 | 12456 |
This news is very confusing. Is it 85% of the current allownce we are getting. Like in case of grade 18 we are currently getting 8714. in this case 85% will be 7406. But this news also stated that we will get HRA according to 45% of our current basic pay, which will be a huge difference like 29000 at least. Can you Please Clarify?
1st of all the clarification of this news required. The questions you mentioned are simple.
Ya hiring allowance ha hoyse rent allowance nahi
Ok but there is still confusion as in news there is mention on the basis of 2008 Pay scales that is only for the HRA.