Monetisation plan: 25% increase in house rent for govt employees

Published: September 15, 2011
Finance Ministry awaits estimates of additional expenditures on this account.

Finance Ministry awaits estimates of additional expenditures on this account.


The finance ministry has, in principle, approved a 25 per cent increase in house rent of government employees as part of a monetisation plan, which will replace different facilities provided to them with a fixed monthly amount in their salaries.

According to an official of the finance ministry, the ministry took the decision after reviewing a summary submitted by the Ministry of Housing and Works based on recommendations of the pay and pensions commission about monetisation.

However, the final decision will be taken after the Ministry of Housing and Works provides an assessment of additional expenses in the face of increase in house rent.

The official said the housing ministry, in its summary, had sought an 80 per cent increase in house rent ceiling, but the finance ministry reduced it to 25 per cent, saying the housing ministry’s proposal was too high, which would put extra burden on the national kitty. The finance ministry has now sought details of the financial impact of the increase in house rent.

In the first phase, the increase in house rent will be added to the salaries of government employees in a bid to stop allotment of houses.

According to the official, the recommendations of the pay and pensions commission, headed by Dr Ishrat Hussain, are being studied for a long time, but they have not been implemented due to fears of heavy additional expenses and other perplexities.

According to the recommendations, the monetisation plan will be implemented in phases. First, those employees, who have not been provided any housing facility, will get an increase in house rent and those having such facility will see their houses and flats auctioned. However, they will be offered a 10 per cent concession if they show interest in purchasing these houses.

Another summary for withdrawing vehicle, petrol and other facilities from government officers of Grade 20 to 22 and replacing them with a Rs40,000 to Rs60,000 allowance per month, has been sent to the cabinet division. This is also expected to be approved soon.

Grade 20 officer will get an allowance of Rs40,000, Grade 21 officer will get Rs50,000 and Grade 22 officer will get Rs60,000. The employees can also purchase government vehicles by depositing down payment while vehicles of those employees who do not opt for this, will be auctioned.

The withdrawal of vehicle facility will lead to a saving of Rs1.6 billion this fiscal year as different government departments had demanded release of this amount for purchase of new vehicles. In addition to this, money spent on repair and maintenance of vehicles and salaries of drivers will also be saved.

Published in The Express Tribune, September 15th,  2011.

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Reader Comments (4)

  • Iqbal Muhammad
    Sep 15, 2011 - 1:14PM

    Dear Sir
    My comment is about increase in house rent of the Government servants and the option to purchase the house that they have been officially alloted. My question is: Is there anything for the retired Governemnt servants in all this? Don’t they need a house? Should the Pay and Pension Committee (remember it is also Pension Committee) not think of the retired ones?


  • Sep 15, 2011 - 3:33PM

    Allowances are too high but still it’s a move in the right direction. In time they might even tackle the excesses of those at the top. The likes of MNA and ministers who have fleets of cars. Yeah I know it’s now likely but one can hope.


  • rehan
    Sep 17, 2011 - 12:29AM

    Increase in house rent ceiling is a good suggestion and it will also decrease burden from Government. Because govt has to pay advance to govt employees on hired accomodation. It is only a suggestion, hope that it will be implemented soon.


  • arshadali
    Oct 24, 2011 - 9:57AM

    emphasized textwhat is the benefit tp a person ,whose not in goverenment department


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