8th Pay Commission HRA: Regarding the 8th Pay Commission, it is being said that the House Rent Allowance (HRA) may increase more than expected because it is directly linked to the basic salary.

Bumper increase in HRA expected in 8th Pay Commission.

8th Pay Commission: News is now emerging regarding the 8th Pay Commission, which will likely increase the House Rent Allowance (HRA) beyond the expectations of central government employees. The main reason for this is that HRA is directly linked to your basic salary, and the new Pay Commission is expected to increase the basic salary. HRA is calculated based on the basic salary. Under the 8th Pay Commission, various fitment factors such as 2.0, 2.28, and 2.57 are being considered.

How much will HRA increase?

For example, the basic salary of a Level-1 employee is currently ₹18,000. If the 2.0 fitment factor is applied, their basic salary will increase to ₹36,000, and the house rent allowance will increase to ₹10,800, up from ₹5,400 previously.

Similarly, if a 2.57 fitment factor is applied to Level-1 employees, their basic salary will increase directly from Rs 18,000 to Rs 46,260, and their HRA will increase by up to Rs 13,880. Similarly, the HRA for Level-10 employees could reach Rs 43,250 per month for X-category cities.

What is the demand regarding HRA?

Central government employees currently get HRA at three different rates depending on their place of posting-

• 30% of basic salary for X-category cities
• 20% for Y-category cities
• 10% for Z-category cities

However, the All India NPS Employees Association and other organizations argue that the current rates are too low compared to the rapidly rising housing rents in metropolitan cities like Delhi-NCR and Mumbai. They demand that the current HRA rates be increased to 36% of the basic salary for X-category cities, 24% for Y-category cities, and 12% for Z-category cities. Some organizations have even called for it to be increased to 40% for X-category cities.