8th Pay Commission: Can Level 10 employees get up to Rs 57,000/month HRA?
In Chandigarh, the 8th Pay Commission is in talks with employee groups regarding crucial pay and pension issues. Prominently, the House Rent Allowance has emerged as a significant concern among multiple organizations. Advocates are pushing for hig...

In the meetings in Chandigarh, the pay commission is most likely to discuss central government employees’ issues related to pay, pension, allowances and work-related changes. In all previous discussions of the 8th Pay Commission with stakeholders, the issue of house rent allowance (HRA) has been discussed prominently.
Since HRA forms a major part of employees’ salary, central government employee and pensioner bodies want the HRA to be raised prominently in the wake of fast-rising rents in Tier I and II cities. Most bodies also want HRA benefits to be extended to pensioners.
Also Read: 8th Pay Commission news: Pensioners demand 67% of last pay drawn, Rs 69,000 minimum pay, 3.83 fitment factor
Stakeholders’ HRA recommendations to 8th Pay Commission
| Organisation | HRA |
| 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) and 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) and be linked with DA increases. HRA should also be extended to pensioners. |
| FNPO | 40%, 35%, 30% slabs; should be DA-linked; and should be extended to pensioners |
| IRTSA | 40%, 30%, 20% and 10% for different class of cities. Should be linked to DA. HRA rates should be increased by 25% whenever DA reaches 25% |
The National Council – Joint Consultative Machinery, the umbrella central government employee body, has recommended increasing the HRA rates from the 7th Pay Commission’s ranges of 24% of the basic pay (X-category cities), 16% (Y) and 8% (Z) cities to 40%, 35% and 30%, respectively.
The All India Defence Employees’ Federation, which represents civilian Defence employees, also has a similar demand for HRA rates. Like the NC-JCM, the AIDEF also wants HRA benefits for pensioners. The Indian Railways Technical Supervisors Association, on the other hand, has proposed a 4-Tier HRA, where it wants 40%, 30%, 20% and 10% HRA rates for different classes of cities.
Also Read: 8th Pay Commission news: Pensioners' body in Chennai recommends 3.83 fitment factor; but can 8th CPC deliver it?
At present, central government employees get 30% (X-category cities), 20% (Y) and 10% (Z) HRA rates after they were revised in January 2024, when the dearness allowance (DA) for these employees reached 50%.
How increased HRA rates may impact salaries of employees
HRA is a percentage of the basic salary. When the government notifies the 8th Pay Commission report, a new fitment factor will emerge. With that, the HRA amount will automatically be increased. If HRA rates are also increased, the salary jump can even be higher.
For example, a Level 1 employee gets Rs 18,000 as the basic pay and 30% of basic pay as HRA (for X-category city) under the 7th Pay Commission. If the 8th Pay Commission’s fitment factor is 2.1 and the government retains the 30% HRA rate, they may get an additional HRA of 5,940 per month.
| Particulars | Fitment factor | Revised basic pay | HRA – X city (30%) | HRA – Y city (20%) | HRA – Z city (10%) |
| Current pay | — | ₹ 18,000 | ₹ 5,400 | ₹ 3,600 | ₹ 1,800 |
| With 2.1 fitment factor | 2.1 | ₹ 37,800 | ₹ 11,340 | ₹ 7,560 | ₹ 3,780 |
| Additional HRA | — | — | ₹ 5,940 | ₹ 3,960 | ₹ 1,980 |
| Particulars | Fitment factor | Revised basic pay | HRA – X city (35%) | HRA – Y city (25%) | HRA – Z city (20%) |
| Current pay | — | ₹ 18,000 | ₹ 5,400 | ₹ 3,600 | ₹ 1,800 |
| With 2.1 fitment factor | 2.1 | ₹ 37,800 | ₹ 13,230 | ₹ 9,450 | ₹ 7,560 |
| Additional HRA | — | — | ₹ 7,830 | ₹ 5,850 | ₹ 5,760 |
Since the HRA rates for the 8th Pay Commission will be known only after the report is notified, for HRA calculation purposes for a Level 10 employee, we are taking the NC-JCM-recommended HRA rates of 40%, 35% and 30%.
As per the 7th Pay Commission, a Level 10 officer has a basic salary of Rs 56,100, and at 30%, 20%, and 10% HRA rates, they get Rs 16,830, Rs 11,220, and Rs 5,610, respectively, for different categories of cities. Now let’s see what can be their HRA rates at 2.1, 2.28 and 2.57 fitment factors and 40%, 35% and 30%.
| Fitment Factor | Revised Basic | HRA (X - 40%) | HRA (Y - 35%) | HRA (Z - 30%) |
| 2.1 | ₹ 1,17,810 | ₹ 47,124 | ₹ 41,234 | ₹ 35,343 |
| 2.28 | ₹ 1,27,908 | ₹ 51,163 | ₹ 44,768 | ₹ 38,372 |
| 2.57 | ₹ 1,44,177 | ₹ 57,671 | ₹ 50,462 | ₹ 43,253 |
However, the real jump in their HRA will be known only after the 8th Pay Commission’s report is notified.
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