85% increase in house rent allowance (HRA)
The federal government of Pakistan has taken a big relief decision for government employees and announced an 85% increase in house rent allowance (HRA). The move is aimed at reducing rising inflation and the cost of living so that the financial condition of government employees can improve. The Ministry of Finance has officially approved the increase, and it will soon be presented for final approval in the federal cabinet meeting.
Finance Ministry approval and next steps
The government has prepared a summary of this decision, which will be discussed in the upcoming federal cabinet meeting. After this approval, this new increase in house rent allowance will be implemented in all government departments. Finance Ministry officials say that this move will be a big financial relief for government employees, especially those who are burdened by the rent burden.
Which employees will benefit from this decision?
The increase in house rent allowance will be applicable to all government employees from Grade 1 to Grade 22. This includes not only permanent employees but also contract employees, which means that a large workforce of the federal government will benefit from it. From junior officers to senior officers, everyone will be given the same benefit.
Old system and new system: What has changed?
For the past several years, house rent allowance has been given to government employees based on the 2008 basic salary, which is no longer in line with inflation and the increasing rate of current rents. In the new system, the allowance will be calculated on the basis of the current basic salary. This will significantly improve the income of employees.
Financial benefits for government employees
The increase will benefit especially the lower-grade employees, as they are the most affected by the rising cost of rent. This decision will not only increase their take-home salary but will also improve their standard of living. Due to the reduction in financial pressure, they will be able to meet their and their families’ expenses better.
Other relief measures
The Ministry of Finance has also announced 10 percent ad hoc relief and 30 percent DRA (Disparity Reduction Allowance). This is aimed at further strengthening the financial condition of government employees. These measures are an attempt to increase the overall income of employees and reduce financial difficulties.
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