The federal government has decided to increase the house rent allowance of its employees by 85 per cent.

According to official sources, the Finance Ministry has approved the summary, which will now be presented to the federal cabinet for final approval.

The increase will apply to all federal employees from Grade 1 to Grade 22.

The revised house rent allowance will be calculated based on the current basic pay, instead of the 2008 pay scales currently in use.

The decision aims to align the house rent allowance with present-day salary structures, offering much-needed relief to government employees amid rising living costs.