House Rent Allowance (HRA) Zones & Rules | Tankhwah Knowledge Base

House Rent Allowance (HRA)

House Rent Allowance is a core component of a government employee's salary in Pakistan, intended to subsidize their housing expenses if government accommodation is not provided.

Calculation Formula

HRA is not calculated on the current basic pay. Due to government freeze policies, it is calculated as a percentage of the initial basic pay of a specific reference year chart:

For Federal and Punjab Government employees, HRA is calculated at 45% (for big cities) or 30% (for small cities) of the initial basic pay of the 2008 Pay Scale Chart.

Big Cities (45%) vs Small Cities (30%)

The government classifies certain major urban centers as "Specified Cities" (commonly referred to as Big Cities) where the cost of living and rent is higher. Specified Cities Include:

Islamabad
Rawalpindi
Lahore
Karachi
Peshawar
Quetta
Faisalabad
Multan
Hyderabad

Employees stationed in these cities receive 45% HRA. Employees stationed in all other cities/districts receive 30% HRA.

Deduction for Government Accommodation

If an employee is allotted official government accommodation (residence), they are not entitled to HRA. In fact, a flat 5% house rent deduction is made from their current basic pay as maintenance charges for the official residence.

Dual HRA

In cases where a husband and wife are both government employees and posted at the same station, if one of them is allotted a government residence, neither is entitled to HRA, and a 5% deduction will apply to the allotted employee's salary.