8th Pay Commission HRA calculator: Check estimated HRA for Level 1-4 employees at 2.0, 2.1, 2.28, and 2.57 fitment factors

The 8th Pay Commission concluded its stakeholder meetings in Kolkata on July 10, 2026. During consultations and memorandum submissions, several central government employee bodies sought an increase in House Rent Allowance (HRA) rates from the current 30% (X cities), 20% (Y cities) and 10% (Z cities). Since HRA is calculated as a percentage of basic pay, any increase in basic salary under the 8th Pay Commission will automatically raise HRA.

Under the 7th Pay Commission, HRA rates were initially 27% (X), 18% (Y) and 9% (Z). These were revised to 30%, 20% and 10%, respectively, after Dearness Allowance (DA) reached 50% in January 2024.

Many central government employee organisations believe the existing HRA is inadequate, particularly for Group C and Group D employees, as house rents have risen significantly in major cities. Most organisations, including the National Council–Joint Consultative Machinery (Staff Side), have demanded an HRA of up to 40% and have also proposed linking HRA to DA and merging them whenever DA reaches 25%. This will allow HRA to rise automatically with future DA revisions.

As per the 7th Pay Commission, Level 1-10 covers employees from Group D staff to entry-level Group A officers, with starting basic pay ranging from Rs 18,000 to Rs 56,100. The following estimates, prepared by BankBazaar, assume the existing HRA rates of 30% (X), 20% (Y), and 10% (Z), and show how HRA may increase with fitment factors of 2.0, 2.1, 2.28, and 2.57.

The table above shows the estimated HRA for Level 1 employees (current basic pay: Rs 18,000) under different fitment factors.

The table above shows the estimated HRA for Level 2 employees (current basic pay: Rs 19,900) under different fitment factors.

The table above shows the estimated HRA for Level 3 employees (current basic pay: Rs 21,700) under different fitment factors.

The table above shows the estimated HRA for Level 4 employees (current basic pay: Rs 25,500) under different fitment factors.