The 8 th Pay Commission has concluded its Kolkata meetings. The commission has also extended the to submit employee data for government departments till July 31, 2026. It may also release its next set of meeting schedule soon. As the 8 th Pay Commission is stepping ahead to prepare its report of recommendations, central government employees of every level are eagerly waiting for increments in their salary and allowances.
When the 8 th Pay Commission revises basic salaries of employees, their allowances such as House Rent Allowance (HRA), Transport Allowance (TPTA) and Child Education Allowance (CEA) will also be revised. The HRA is an important component of central government employees as everyone gets it as per their basic pay and the city of residence. Central government employee bodies have been demanding to increase HRA up to 40% of the basic pay. The magnitude of HRA increase will also depend on the fitment factor that the 8 th CPC decides.
In this write-up, through expert calculations, we will discuss the estimated HRA increase for Level 14-18 employees (senior-level government officers) at a 2.0, 2.1, 2.28 and 2.57 fitment factors. We will also reveal how HRA in the 8 th CPC may go up to Rs 1,93,000/month at a fitment factor of 2.57.
HRA in 7th Pay Commission (current HRAs central government employees get)
When the 7th Pay Commission was implemented in 2016, it decided on the HRA in the ranges of 27% (X-category cities), 18% (Y) and 9% (Z), respectively. However, when the dearness allowance (DA) reached at 50%, HRA rates were increased to 30% (X), 20% (Y) and 10% (Z), respectively.
8th Pay Commission HRA: What employee bodies have been demanding
Since HRA is a key component of employees’ salaries, most key central government employee bodies have been demanding to increase HRA rates significantly as well as merging it with the DA after a certain stage. They say if the HRA increases with the DA after a certain stage, it will automatically be revised to keep pace with inflation.
Many bodies also agree on a thought that the current HRA rates are inadequate for Group D or C employees as rents are much higher in big cities compared to the HRA they get. Here are HRA-related demands of key central government employee bodies such as All India NPS Employees Federation (AINEF), National Council – Joint Consultative Machinery (NC-JCM), All India Defence Employees Federation (AIDEF), Federation of National Postal Organisations (FNPO) and Indian Railways Technical Supervisors Association (IRTSA).
| Organisation | HRA proposal |
| AINPSEF | 36% (X cities), 24% (Y cities), and 12% (Z cities) |
| NC-JCM Staff Side memorandum | HRA should continue in three slabs: 40% (X), 35% (Y), and 30% (Z); should be linked with DA increases; HRA should also be extended to pensioners. |
| AIDEF | HRA should continue in three slabs: 40% (X), 35% (Y), and 30% (Z); should be linked with DA increases; HRA should also be extended to pensioners. |
| FNPO | 40%, 35%, and 30% slabs; should be linked with DA and extended to pensioners. |
| IRTSA | 40%, 30%, 20%, and 10% for different classes of cities; should be linked to DA. HRA rates should increase by 25% whenever DA reaches 25%. |
High fitment factor will lead to high HRA
Since the HRA of a central government employee is calculated as a percentage of their basic salary, a high fitment factor will translate into a higher revised basic pay, which will lead to a high HRA for employees.
For example, a Level 2 employee with a Rs 19,990 basic pay gets Rs 5,957 (30% of basic pay) as the HRA in an X category city like Delhi. If the fitment factor is 2.0 and the HRA rate remains at 30%, their revised HRA will be Rs 11,914. However, if the fitment factor is 2.28, the revised HRA will be Rs 13,582. If the pay commission increases the HRA rate from 30% to a higher rate, the HRA amount will rise further.
How HRA of Level 14-18 employees can change at 2.0, 2.1, 2.28 and 2.57 fitment factors in 8th Pay Commission
As per the 7th Pay Commission pay matrix, Level 14-18 central government employees are senior government officials such as joint secretaries, additional secretaries, secretaries and the cabinet secretary. The basic salaries of these employees are in the range of Rs 1,44,200-Rs 2,50,000.
| Pay Level | Entry Basic Pay | Typical Central Government Posts |
| Level 14 | ₹ 1,44,200 | Joint Secretary (Government of India), senior officers of organized Group A services, Major General (Army equivalent) |
| Level 15 | ₹ 1,82,600 | Additional Secretary to Government of India, Lieutenant General (HAG), equivalent senior administrative posts |
| Level 16 | ₹ 2,05,400 | Secretary to Government of India, Director General–level officers in some central organizations |
| Level 17 | ₹2,25,000 (Fixed) | Cabinet Secretary-equivalent apex scale officers, Chief Secretaries of large states (state cadre), top-level central administrative positions |
| Level 18 | ₹2,50,000 (Fixed) | Cabinet Secretary to the Government of India (highest-ranking civil servant) |
Bankbazaar presents calculations of estimated revised HRA of Level 14-18 central government employees at 2.0, 2.1, 2.28 and 2.57 fitment factors in the 8th Pay Commission.
8th Pay Commission: Estimated HRA of Level 14 employees
| Basic Pay (Level 14) | Fitment Factor | Revised Basic Pay | HRA (X City - 30%) | HRA (Y City - 20%) | HRA (Z City - 10%) |
| ₹ 1,44,200 | 2 | ₹ 2,88,400 | ₹ 86,520 | ₹ 57,680 | ₹ 28,840 |
| ₹ 1,44,200 | 2.1 | ₹ 3,02,820 | ₹ 90,850 | ₹ 60,560 | ₹ 30,280 |
| ₹ 1,44,200 | 2.28 | ₹ 3,28,780 | ₹ 98,630 | ₹ 65,760 | ₹ 32,880 |
| ₹ 1,44,200 | 2.57 | ₹ 3,70,590 | ₹ 1,11,180 | ₹ 74,120 | ₹ 37,060 |
| Basic Pay (Level 15) | Fitment Factor | Revised Basic Pay | HRA (X City - 30%) | HRA (Y City - 20%) | HRA (Z City - 10%) |
| ₹ 1,82,600 | 2 | ₹ 3,65,200 | ₹ 1,09,560 | ₹ 73,040 | ₹ 36,520 |
| ₹ 1,82,600 | 2.1 | ₹ 3,83,460 | ₹ 1,15,040 | ₹ 76,690 | ₹ 38,350 |
| ₹ 1,82,600 | 2.28 | ₹ 4,16,330 | ₹ 1,24,900 | ₹ 83,270 | ₹ 41,630 |
| ₹ 1,82,600 | 2.57 | ₹ 4,69,280 | ₹ 1,40,780 | ₹ 93,860 | ₹ 46,930 |
| Basic Pay (Level 16) | Fitment Factor | Revised Basic Pay | HRA (X City - 30%) | HRA (Y City - 20%) | HRA (Z City - 10%) |
| ₹ 2,05,400 | 2 | ₹ 4,10,800 | ₹ 1,23,240 | ₹ 82,160 | ₹ 41,080 |
| ₹ 2,05,400 | 2.1 | ₹ 4,31,340 | ₹ 1,29,400 | ₹ 86,270 | ₹ 43,130 |
| ₹ 2,05,400 | 2.28 | ₹ 4,68,310 | ₹ 1,40,490 | ₹ 93,660 | ₹ 46,830 |
| ₹ 2,05,400 | 2.57 | ₹ 5,27,880 | ₹ 1,58,360 | ₹ 1,05,580 | ₹ 52,790 |
| Basic Pay (Level 17) | Fitment Factor | Revised Basic Pay | HRA (X City - 30%) | HRA (Y City - 20%) | HRA (Z City - 10%) |
| ₹ 2,25,000 | 2 | ₹ 4,50,000 | ₹ 1,35,000 | ₹ 90,000 | ₹ 45,000 |
| ₹ 2,25,000 | 2.1 | ₹ 4,72,500 | ₹ 1,41,750 | ₹ 94,500 | ₹ 47,250 |
| ₹ 2,25,000 | 2.28 | ₹ 5,13,000 | ₹ 1,53,900 | ₹ 1,02,600 | ₹ 51,300 |
| ₹ 2,25,000 | 2.57 | ₹ 5,78,250 | ₹ 1,73,480 | ₹ 1,15,650 | ₹ 57,820 |
| Basic Pay (Level 18) | Fitment Factor | Revised Basic Pay | HRA (X City - 30%) | HRA (Y City - 20%) | HRA (Z City - 10%) |
| ₹ 2,50,000 | 2 | ₹ 5,00,000 | ₹ 1,50,000 | ₹ 1,00,000 | ₹ 50,000 |
| ₹ 2,50,000 | 2.1 | ₹ 5,25,000 | ₹ 1,57,500 | ₹ 1,05,000 | ₹ 52,500 |
| ₹ 2,50,000 | 2.28 | ₹ 5,70,000 | ₹ 1,71,000 | ₹ 1,14,000 | ₹ 57,000 |
| ₹ 2,50,000 | 2.57 | ₹ 6,42,500 | ₹ 1,92,750 | ₹ 1,28,500 | ₹ 64,250 |
Disclaimer: Illustrative HRA estimates are based on assumed fitment factors and HRA rates. Final pay and allowances may vary. Source: BankBazaar. com
