8th Pay Commission HRA calculation: Can Level 10 employees get Rs 57,000 monthly?
By Anshika Jain, ET Online |
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8th Pay Commission HRA: What are employee bodies demanding?
Central government employee and pensioner bodies are demanding higher HRA rates, citing rising rents in Tier I and II cities. The National Council-Joint Consultative Machinery (NC-JCM) has proposed HRA of 40%, 35% and 30% for X, Y and Z cities, respectively, against the 7th CPC rates of 24%, 16% and 8%. The All India Defence Employees Federation (AIDEF) has made a similar demand and wants HRA facilities to be extended to pensioners as well.
The Indian Railways Technical Supervisors Association (IRTSA) has proposed four HRA rates of 40%, 30%, 20% and 10%. Currently, employees receive 30%, 20% and 10% HRA for X, Y and Z cities after the January 2024 revision.
The Indian Railways Technical Supervisors Association (IRTSA) has proposed four HRA rates of 40%, 30%, 20% and 10%. Currently, employees receive 30%, 20% and 10% HRA for X, Y and Z cities after the January 2024 revision.
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How will a higher fitment factor affect HRA?
HRA is calculated as a percentage of basic pay. Therefore, when the 8th Pay Commission revises basic salary through a fitment factor, the HRA amount will also increase.
For example, a Level 1 employee with Rs 18,000 basic pay currently gets 30% HRA, or Rs 5,400, for an X-category city. If the fitment factor is 2.1 and the HRA rate remains at 30%, the employee could get an additional Rs 5,940 HRA per month.
For example, a Level 1 employee with Rs 18,000 basic pay currently gets 30% HRA, or Rs 5,400, for an X-category city. If the fitment factor is 2.1 and the HRA rate remains at 30%, the employee could get an additional Rs 5,940 HRA per month.
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8th Pay Commission HRA: What if the HRA rate rises to 35%?
If the fitment factor remains at 2.1, but the HRA rate increases from 30% to 35%, the additional HRA for the Level 1 employee could rise to Rs 7,830 per month. This shows how both the fitment factor and HRA rate can influence the increase in HRA after the 8th Pay Commission.
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8th Pay Commission HRA calculator: Level 10 at 2.1, 2.28 and 2.57 fitment factors
Under the 7th Pay Commission, a Level 10 officer has a basic salary of Rs 56,100. At the current HRA rates, the monthly HRA works out to:
● X-category city: 30% = Rs 16,830
● Y-category city: 20% = Rs 11,220
● Z-category city: 10% = Rs 5,610.
The estimated HRA for Level 10 officers is calculated using three assumed fitment factors, 2.1, 2.28 and 2.57, along with the proposed HRA rates of 40%, 35% and 30%.
● X-category city: 30% = Rs 16,830
● Y-category city: 20% = Rs 11,220
● Z-category city: 10% = Rs 5,610.
The estimated HRA for Level 10 officers is calculated using three assumed fitment factors, 2.1, 2.28 and 2.57, along with the proposed HRA rates of 40%, 35% and 30%.
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Level 10 HRA: Can it cross Rs 57,000 at a 2.57 fitment factor?
According to calculations, a 2.57 fitment factor and 40% HRA rate could result in an HRA of more than Rs 57,671 per month for a Level 10 officer. However, these are only estimates. The actual HRA increase will be known only after the 8th Pay Commission report is finalised and notified, including the applicable fitment factor and HRA rates.
