Govt Clarifies Housing Advances for Federal Employees
The federal government has issued detailed guidelines clarifying advance salary entitlements available to employees seeking financial assistance for housing-related purposes.
A memorandum issued by the Ministry of Finance states that employees in Grades 1 to 16 are eligible to receive housing advances equal to a maximum of thirty-six months’ salary.
Employees in Grade 17 and above, classified as officers, are entitled to receive housing advances of up to twenty-four months’ salary under the government’s financial support framework.
The ministry explained that all housing advance disbursements will follow the Federal Government Receipts and Payment Rules 2025 to ensure proper and transparent allocation.
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Lower-grade employees can receive up to three years’ salary in advance, while senior officers remain eligible for a maximum of two years’ salary for housing purposes.
Separately, the federal cabinet has approved an eighty-five percent increase in the house rent ceiling for federal employees from Grades 1 to 22 to ease rising living costs.
The Ministry of Housing and Works submitted the proposal to the cabinet, which was formally approved during the latest cabinet meeting, securing legal and procedural backing.
The house rent ceiling hike is projected to cost the national exchequer approximately PKR 12 billion while providing substantial financial relief and improving employee welfare nationwide.
