Punjab Finance Department Notification House Rent Allowance

Punjab Government Finance Department issued Notification No. FD.PR.9-4/2018 about civil employees. It is House Rent Allowance 2018 dated 18-07-2018 Punjab Government. This is a revision in the House Rent Allowance 2018 w.e.f 01-07-2018. So, the House Rent Allowance on the Revised Pay Scale 2008 was 30% or 45%. The detail is as under

Punjab Govt Finance Department Notification House Rent Allowance


big declared cities
45% minimum pay scale of 2008
@50% Increase in the amount of House Rent Allowance of the existing amounts being drawn
Other Cities
30% of the minimum of basic pay scale 2008
Increase in the amount of House Rent Allowance @50% of the existing amounts being drawn


House Rent Allowance (HRA) is an essential component of an employee’s salary, especially for those living in rented accommodations. In Punjab, Pakistan, the Finance Department plays a crucial role in issuing notifications and guidelines related to various aspects of government employees’ compensation. This article explores the Punjab Finance Department Notification regarding House Rent Allowance, shedding light on its significance, eligibility criteria, and the impact it has on employees’ lives.

Punjab Govt Finance Notification House Rent Allowance 2018

Punjab Finance Department Notification: Understanding House Rent Allowance (HRA)

Understanding House Rent Allowance (HRA)

House Rent Allowance, commonly known as HRA, is an allowance provided by an employer to its employees to meet their rental housing expenses. The purpose of this allowance is to provide financial assistance to employees who live in rented accommodations, thereby easing their financial burden and ensuring access to adequate housing facilities.

Punjab Finance Department’s Notification

The Punjab Finance Department issues notifications from time to time, outlining the rules, rates, and eligibility criteria for House Rent Allowance for government employees in the province. These notifications are based on the prevailing economic conditions and aim to maintain a fair and equitable compensation system for government servants.

Eligibility Criteria

To be eligible for House Rent Allowance, government employees must fulfill certain criteria set forth by the Punjab Finance Department. While specific criteria may vary depending on the employee’s job category and grade, the following are some common eligibility requirements:

  1. Residential Status: Employees who reside in rented accommodations are eligible to claim HRA. Employees living in their own properties or government-provided accommodations may not be eligible for this allowance.
  2. Proof of Rent Payment: Employees must provide valid documentation, such as a rental agreement or rent receipts, to support their claim for HRA.
  3. Grade and Designation: The eligibility for HRA may vary based on the employee’s grade and designation. Higher-ranking officials may receive a higher allowance compared to lower-ranked employees.

Rates and Calculation

The Punjab Finance Department Notification specifies the rates at which it grants HRA to eligible employees. The department generally calculates the allowance as a percentage of the employee’s basic salary. The exact percentage may vary depending on the city or locality where the employee resides.

For example, employees living in major cities with higher rental expenses may receive a higher HRA compared to those living in smaller towns or rural areas. The HRA rates are periodically reviewed and revised to align with changes in the cost of living and housing expenses.

Impact on Employees

House Rent Allowance has a significant impact on the lives of government employees, especially those living in urban centers with high housing costs. The allowance provides financial relief, allowing employees to allocate a considerable portion of their income toward other essential expenses. Additionally, HRA encourages employees to live in decent accommodations, as it becomes more affordable to rent better housing facilities.

Furthermore, HRA also serves as an incentive for government employees to serve in remote or hardship areas where accommodation options may be limited or costly. It helps attract and retain talent in these regions by providing financial assistance for housing needs.


The Punjab Finance Department’s Notification on House Rent Allowance ensures fair compensation for government employees’ housing expenses. HRA improves employees’ quality of life by offering financial assistance for rented accommodations. The department regularly reviews and updates HRA rates to maintain a balanced compensation system, fostering a motivated workforce.

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