8th Pay Commission: 65% salary hike? How higher HRA, TA and DA merger could raise a Level 1 employee's salary
1/9
8th Pay Commission salary calculations: Why employee unions are demanding major changes
Several organisations representing central government employees and pensioners have urged the 8th Pay Commission to revise HRA, transport allowance, family unit norms and dearness allowance. They argue that the current salary structure no longer reflects the cost of living, especially in large cities where housing and daily expenses have increased sharply.
2/9
8th Pay Commission fitment factor: How a higher family unit could increase basic pay
The current pay structure assumes a family unit of three members. AINPSEF has proposed increasing it to 4.4 units by including dependent parents. According to the federation, this could raise the fitment factor from about 2.05 to 2.10, resulting in a significantly higher revised basic salary for Level 1 employees.
3/9
8th Pay Commission HRA revision: What employee bodies are demanding
Most employee organisations have sought substantially higher House Rent Allowance under the 8th Pay Commission. While AINPSEF has proposed HRA of 36%, 24% and 12% for X, Y and Z cities, respectively, other bodies have recommended even higher slabs of 40%, 35% and 30%, linked to future DA increases.
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4/9
8th Pay Commission transport allowance: Why higher TPTA is being sought
Employee unions believe the existing transport allowance is inadequate, particularly in metro cities. AINPSEF has proposed a minimum ₹9,000 TPTA for Level 1 employees, while several other organisations have recommended tripling the existing allowance and linking future increases to dearness allowance.
5/9
8th Pay Commission DA merger: Why employee unions want it merged with basic pay
Many employee organisations have recommended merging Dearness Allowance with basic pay once DA reaches 25%. They argue that this would provide a stronger base for future salary revisions, allowances and pension calculations while ensuring pay keeps pace with inflation.
6/9
8th Pay Commission salary calculator: Current vs proposed salary for Level 1 employees
At present, a Level 1 employee in an X-category city receives a gross monthly salary of about ₹37,080, including basic pay, DA, HRA and transport allowance. Under AINPSEF's proposal, the revised gross salary could increase to around ₹61,344 after applying a 2.10 fitment factor, higher HRA and revised TPTA.
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8th Pay Commission salary hike: How the proposed 65% increase is calculated
The projected increase is based on multiple assumptions—a 2.10 fitment factor, 36% HRA, a ₹9,000 transport allowance, and a 2% DA on the revised basic pay. Together, these changes increase the estimated gross salary from ₹37,080 to ₹61,344, representing an overall rise of nearly 65%.
8/9
8th Pay scale: Which employee organisations support these changes?
The proposals have come from organisations including AINPSEF, NC-JCM Staff Side, AIDEF, FNPO and IRTSA. While each body has different recommendations on HRA, transport allowance and family units, most agree that the current pay structure should be revised to better reflect inflation and rising living costs.
9/9
8th Pay Commission latest news: Are these salary hike proposals final?
No. These are recommendations submitted by employee organisations and have not been accepted by the government. The 8th Pay Commission is yet to finalise its report, and the government will take the final decision on the fitment factor, HRA, transport allowance, DA merger and other salary revisions.
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