According to the Khyber Pakhtunkhwa Budget Speech 2021, the Chart of House Rent Allowance Increase 2021 KPK has been prepared. The House Rent of the employees of KP, the Government increased. The maximum percentage of increase is 54.8% in Peshawar city for BPS-15. The minimum increase percentage is 7.2%.

Chart of House Rent Allowance Increase 2021 KPK

The Government of KP is aiming to remove all anomalies in the current housing policy. At present, house rent allowance is frozen on initial basic pay of 2008, with employees posted in the provincial capital Peshawar getting house rent allowance at 45% of initial basic pay, while at 30% in the rest of the province. Furthermore, a housing subsidy is paid by the provincial government to employees in Peshawar and Abbottabad who have their own accommodation, and the amount of house subsidy is much higher, often double, than the house rent allowance paid to an employee in the equivalent grade.

To eliminate this disparity, the new housing policy will match the house rent allowance with the house subsidy amount in Peshawar over a period of two years. Further, it will also raise the house rent allowance for employees posted in other districts of the province by 50%. These changes in the policy will enable the employees, both in Peshawar and the rest of the province, to manage increasing rental costs.

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Table of Revision of HRA 2021 KP

Special Thanks: Mr. Muhammad Ayaan