House Rent Allowance Chart @7% Revised Rates

KPK House Rent Allowance Chart @7% Revised Rates has been prepared. So, all employees of Khyber Pakhtunkhwa may download the new House rent chart to use.

However, the KPK govt has to increase @7% of the basic pay scales in 2017 in the budget speech 2021. Therefore, we have prepared a house rent chart for employees after an increase in the recent budget.

House Rent Allowance Chart at 7%: Revised Rates for Employees


House Rent Allowance (HRA) is an essential component of an employee’s salary, especially for those residing in rented accommodations. It is provided by many employers to help their employees cope with the increasing cost of housing. Recently, a revision has been made to the House Rent Allowance Chart, and the new rates have been set at 7% of the basic pay. This article delves into the significance of the revised HRA rates and how they can benefit employees.

KPK House Rent Allowance Chart @7% Revised Rates

In addition, The KP government is working on a housing policy in 2021. So, all anomalies will be removed with time. This house rent allowance is different in Peshawar than in other districts of the province.

In other words, all employees of Pakistan should know that the house rent has frozen on the initial basic pay scale 2008. So, this chart will give you an increase on the basis of the year 2008.

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Those employees who are working in the capital Peshawar will get an HR allowance @45% of basic pay. Whereas, other employees will get increase @30%.

KPK House Rent Allowance chart

At last, it is necessary to talk about the disparity. After the PTI government in 2018, the employees have raised this issue of disparity. Therefore, the federal and all provincial govt are working to reduce the disparity in the salaries.

The KP govt is going to launch a new housing policy in this regard. They will reduce disparity in the house rent allowance too.

Understanding House Rent Allowance (HRA)

House Rent Allowance is a monetary benefit provided to employees to assist them in meeting their rental expenses. It is part of an employee’s salary structure and is exempt from income tax, subject to certain conditions, as per the Income Tax Act. The HRA amount varies based on the city of residence, with different rates set for metropolitan cities, non-metropolitan cities, and rural areas.

Revised House Rent Allowance Chart at 7%

In response to the rising costs of housing and the need to provide adequate support to employees, many organizations and government bodies have decided to revise the House Rent Allowance rates. As per the latest update, the House Rent Allowance is set at 7% of the employee’s basic pay.

It’s important to note that the 7% rate is a standard percentage, and the actual HRA amount received by employees will vary depending on their basic pay and the city they reside in. Different cities have different classifications based on their population and other factors, and HRA rates are set accordingly.

Benefits of the Revised HRA Rates
  1. Enhanced Financial Support: With the HRA rates revised at 7%, employees will receive a higher amount to cover their rental expenses. This increase can be especially beneficial for those living in high-rent areas, where housing costs are substantial.
  2. Attractive Remuneration Package: Competitive HRA rates make the overall remuneration package more attractive for potential employees. It helps organizations attract and retain talented professionals, as housing is a significant aspect of an employee’s lifestyle and well-being.
  3. Tax Savings: HRA is an essential component of tax planning for employees. By providing a tax-exempt allowance, the revised HRA rates can help employees reduce their taxable income, thereby decreasing their overall tax liability.
  4. Improved Standard of Living: Adequate HRA enables employees to afford better living conditions, leading to an improved standard of living for themselves and their families. This, in turn, can positively impact their job satisfaction and overall productivity.
  5. Boost to Local Economies: The increase in HRA can have a positive impact on the local economy, especially in areas with a high percentage of rented accommodations. It can stimulate housing demand and contribute to the growth of related industries.


The revised House Rent Allowance Chart at 7% comes as a welcome development for employees, providing them with increased financial support to cope with rising rental expenses. By offering a more attractive remuneration package and enabling tax savings, organizations can enhance employee satisfaction and retention. It is crucial for employees to understand their eligibility criteria and submit the necessary documentation to avail of the HRA benefits fully. As housing costs continue to escalate, such initiatives become crucial in ensuring the well-being of the workforce and promoting economic growth.

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