Federal house rent allowance is not a percentage of your current pay. It is 45% of the minimum of your scale in the 2008 pay scales if you are posted in a big city, or 30% elsewhere, plus the 50% increase of 2018. So a BPS-14 employee in Islamabad gets Rs 3,321 a month and at a smaller station Rs 2,214, whatever the stage.
Pick your scale, your station and where you live. If you live in a government-owned or hired house, no house rent allowance is paid and 5% of basic pay is deducted as rent; the calculator shows that too.
House rent allowance chart, BPS 1 to 22
Monthly house rent allowance in rupees. Each step is rounded to the rupee.
| Scale | BPS-2008 minimum | HRA big city (45% + 50%) | HRA other station (30% + 50%) |
|---|---|---|---|
| BPS-1 | 2,970 | 2,006 | 1,337 |
| BPS-2 | 3,035 | 2,049 | 1,367 |
| BPS-3 | 3,140 | 2,120 | 1,413 |
| BPS-4 | 3,240 | 2,187 | 1,458 |
| BPS-5 | 3,340 | 2,255 | 1,503 |
| BPS-6 | 3,430 | 2,316 | 1,544 |
| BPS-7 | 3,530 | 2,384 | 1,589 |
| BPS-8 | 3,665 | 2,474 | 1,650 |
| BPS-9 | 3,820 | 2,579 | 1,719 |
| BPS-10 | 3,955 | 2,670 | 1,781 |
| BPS-11 | 4,115 | 2,778 | 1,853 |
| BPS-12 | 4,355 | 2,940 | 1,961 |
| BPS-13 | 4,645 | 3,135 | 2,091 |
| BPS-14 | 4,920 | 3,321 | 2,214 |
| BPS-15 | 5,220 | 3,524 | 2,349 |
| BPS-16 | 6,060 | 4,091 | 2,727 |
| BPS-17 | 9,850 | 6,650 | 4,433 |
| BPS-18 | 12,910 | 8,715 | 5,810 |
| BPS-19 | 19,680 | 13,284 | 8,856 |
| BPS-20 | 23,345 | 15,758 | 10,506 |
| BPS-21 | 25,880 | 17,469 | 11,646 |
| BPS-22 | 27,680 | 18,684 | 12,456 |
The Finance Division order of 21 July 2026 froze house rent allowance at the level admissible on 30 June 2026, so these amounts carry on in 2026-27. The amount changes only when you move to a higher scale.
How house rent allowance is worked out
The allowance has two parts.
- The 2008 base. Take the minimum of your scale in the Basic Pay Scales 2008 (Finance Division order of 30 June 2008). Big cities get 45% of it and other stations 30%.
- The 2018 increase. The Budget Speech 2018-19 announced that "House rent allowance is also being increased by 50 percent". Add half of step 1.
Example for BPS-17 in Lahore: the 2008 minimum is Rs 9,850. 45% of it is Rs 4,433 and half of that is Rs 2,217, so the allowance is Rs 6,650. At a smaller station it would be 2,955 + 1,478 = Rs 4,433.
Because the base is a 2008 figure, house rent allowance has not kept pace with pay. For BPS-17 it is about 12% of the new minimum basic pay.
Big cities and other stations
The Finance Division order of 28 April 1977, as reproduced in its Compilation of General Orders, lists the higher-rate stations as Islamabad, Karachi, Lahore, Peshawar, Quetta, Rawalpindi, Hyderabad (including Kotri), Multan and Faisalabad. If your station was added later, your accounts office will already be paying the higher rate, so compare with your slip.
Living in a government house: the 5% deduction
Under rule 26 of the Accommodation Allocation Rules 2002, an allottee pays normal rent of 5% of emoluments, and house rent allowance stops. Allottees of government-owned houses in BS-1 to BS-5 are excepted from the rent. Rule 26(5) lets you draw house rent allowance again only after the Estate Office certifies that you no longer occupy a government or hired house.
Example: a BPS-14 employee on Rs 39,600 basic pay moves into a government flat in Islamabad. The Rs 3,321 house rent allowance stops and Rs 1,980 is deducted as rent, a swing of Rs 5,301 a month. ARA-2026 and DRA are not counted for the rent deduction.
Houses hired by the government for you are limited by the rental ceiling of your scale, which the Ministry of Housing and Works revised by 45% in September 2024. That ceiling is what the government will pay a landlord; it is not the allowance paid to you.
The 2 July 2018 Finance Division order on the higher rate is a scanned file we could not read. The chart follows the method used by employee pay charts, which matches their published amounts, but an office may round a rupee or two differently. Khyber Pakhtunkhwa issued its own house rent orders, and we have not verified provincial tables, so provincial employees should compare with their slip. House rent allowance is taxable.
House rent allowance questions
How is house rent allowance calculated for federal employees?
Take the minimum of your scale in the 2008 pay scales. Big cities get 45% of it and other stations 30%. Then add 50% of that amount, the increase announced in the 2018-19 budget. BPS-16 in a big city: 45% of 6,060 = 2,727, plus 1,364 = Rs 4,091.
Did house rent allowance increase in budget 2026-27?
No. The Finance Division order of 21 July 2026 froze house rent allowance at the level admissible on 30 June 2026. The 2026-27 increases were the 7% ARA-2026, the 15% DRA-2026 for those who draw DRA and the 50% rise in conveyance allowance.
Is house rent allowance given on the new basic pay?
No. It is fixed on the minimum of the 2008 scale, not on your running pay or the 2026 scales. It only changes when you are promoted to a higher scale or posted to a station with a different rate.
How much rent is deducted for a government house?
Normal rent is 5% of emoluments under rule 26 of the Accommodation Allocation Rules 2002, and no house rent allowance is paid. The calculator applies it to basic pay; the Estate Office demand on your slip is the final figure. Allottees of government-owned houses in BS-1 to BS-5 pay no rent.
Is house rent allowance taxable in Pakistan?
Yes, house rent allowance is part of taxable salary. The government salary calculator adds it to your pay before working out 2026-27 income tax.
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Last reviewed 30 September 2026. Results are estimates; official notices always take precedence.