Business Desk 
Oct 13, 2025
The federal government on Sunday announced its plan to increase the housing rent allowance for employees by 85%, with an aim to provide major relief.
The Ministry for Finance has formally approved the increase, which will soon be presented to the federal cabinet for final approval.
According to sources, the summary detailing the raise will be discussed in the upcoming cabinet meeting, after which the decision will be implemented across all government departments.
The hike in the house rent allowance will be applied to all government employees from grade 1 to grade 22, aiming to provide a major relief in addressing rising living costs.
Additionally, the decision will cover both permanent and contractual employees, expanding its reach to a significant portion of the federal workforce.
The Ministry of Finance officials said that the revised allowance will be calculated based on the current basic salary, marking a major shift from the previous system, where house rent was determined on the basic pay scale of 2008.
Sources confirmed that the updated calculation will significantly enhance the take-home income of employees, especially those in lower grades who have been most impacted by high rental rates.
