8th Pay Commission salary hike: Revised HRA up to Rs 95,000/month? How much HRA Level 11-13 employees may get at 2.0, 2.1, 2.28, 2.57 fitment factors
By Sneha Kulkarni, ET Online |
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8th Pay Commission salary hike
Employee bodies have made a strong case for raising house rent allowance (HRA) percentages from the current rates of 30% (X cities), 20% (Y cities), and 10% (Z cities) in nearly all of 8th CPC meetings and memorandum submissions. However, if HRA rates stay the same in the 8th Pay Commission and the commission chooses a fitment factor of 2.0, 2.1, 2.28, or 2.57, how much HRA may rise for Level 11-13 employees? Check it out here!
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8th Pay Commission: What is HRA for central government employees?
House Rent Allowance (HRA) is a salary component paid to central government employees to cover rental housing costs. For these employees, HRA is based on city classification (X, Y, Z) and is paid at 30% (X cities), 20% (Y cities), and 10% (Z cities) of their basic pay.
A significant portion of a central government employee's pay comes from the HRA. Since the HRA is expressed as a percentage of the basic income, it will rise in tandem when the 8th Pay Commission revises the basic pay of employees.
A significant portion of a central government employee's pay comes from the HRA. Since the HRA is expressed as a percentage of the basic income, it will rise in tandem when the 8th Pay Commission revises the basic pay of employees.
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Why the fitment factor is a key player in the 8th Pay Commission HRA revision
Since the HRA is given on the basis of the basic pay of an employee, a high revised basic pay in the 8th Pay Commission means a high HRA amount.
For example, a Level 11 employee with a Rs 67,700 basic pay gets Rs 20,310 (30% of basic pay) as HRA if they reside in an X category city like Delhi. If the 8th Pay Commission decides on a 2.0 fitment factor and the HRA rate remains at 30%, their revised HRA will be Rs 40,620.
Bankbazaar presents calculations of estimated revised HRA of central government employees in conditions when the 8th Pay Commission approves a fitment factor of 2.0, 2.1, 2.28 or 2.57 .
For X, Y and Z categories, Bankbazaar’s HRA ranges are 30%, 20% and 10%, respectively.
For example, a Level 11 employee with a Rs 67,700 basic pay gets Rs 20,310 (30% of basic pay) as HRA if they reside in an X category city like Delhi. If the 8th Pay Commission decides on a 2.0 fitment factor and the HRA rate remains at 30%, their revised HRA will be Rs 40,620.
Bankbazaar presents calculations of estimated revised HRA of central government employees in conditions when the 8th Pay Commission approves a fitment factor of 2.0, 2.1, 2.28 or 2.57 .
For X, Y and Z categories, Bankbazaar’s HRA ranges are 30%, 20% and 10%, respectively.
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How HRA of Level 11 employees can change at 2.0, 2.1, 2.28 and 2.57 fitment factors in 8th Pay Commission
Level 11 employee with a Rs 67,700 basic pay
If the fitment factor is 2.0, the revised basic pay would be Rs 1,35,400, and the revised HRA would be Rs 40,620 for X cities, Rs 27,080 for Y cities and Rs 13,540 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 1,42,170. HRA would be Rs 42,650 for X cities, Rs 28,430 for Y cities and Rs 14,220 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 1,54,360. HRA would be Rs 46,310 for X cities, Rs 30,870 for Y cities and Rs 15,440 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 1,73,990. HRA would be Rs 52,200 for X cities, Rs 34,800 for Y cities and Rs 17,400 for Z cities.
If the fitment factor is 2.0, the revised basic pay would be Rs 1,35,400, and the revised HRA would be Rs 40,620 for X cities, Rs 27,080 for Y cities and Rs 13,540 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 1,42,170. HRA would be Rs 42,650 for X cities, Rs 28,430 for Y cities and Rs 14,220 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 1,54,360. HRA would be Rs 46,310 for X cities, Rs 30,870 for Y cities and Rs 15,440 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 1,73,990. HRA would be Rs 52,200 for X cities, Rs 34,800 for Y cities and Rs 17,400 for Z cities.
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How HRA of Level 12 employees can change at 2.0, 2.1, 2.28 and 2.57 fitment factors in 8th Pay Commission
Level 12 employee with a Rs 78,800 basic pay
If the fitment factor is 2, the revised basic pay would be Rs 1,57,600. HRA would be Rs 47,280 for X cities, Rs 31,520 for Y cities and Rs 15,760 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 1,65,480. HRA would be Rs 49,640 for X cities, Rs 33,100 for Y cities and Rs 16,550 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 1,79,660. HRA would be Rs 53,900 for X cities, Rs 35,930 for Y cities and Rs 17,970 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 2,02,520. HRA would be Rs 60,760 for X cities, Rs 40,500 for Y cities and Rs 20,250 for Z cities.
If the fitment factor is 2, the revised basic pay would be Rs 1,57,600. HRA would be Rs 47,280 for X cities, Rs 31,520 for Y cities and Rs 15,760 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 1,65,480. HRA would be Rs 49,640 for X cities, Rs 33,100 for Y cities and Rs 16,550 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 1,79,660. HRA would be Rs 53,900 for X cities, Rs 35,930 for Y cities and Rs 17,970 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 2,02,520. HRA would be Rs 60,760 for X cities, Rs 40,500 for Y cities and Rs 20,250 for Z cities.
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How HRA of Level 13 employees can change at 2.0, 2.1, 2.28 and 2.57 fitment factors in 8th Pay Commission
Level 13 employee with a Rs 1,23,100 basic pay
If the fitment factor is 2.0, the revised basic pay would be Rs 2,46,200. HRA would be Rs 73,860 for X cities, Rs 49,240 for Y cities and Rs 24,620 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 2,58,510. HRA would be Rs 77,550 for X cities, Rs 51,700 for Y cities and Rs 25,850 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 2,80,670. HRA would be Rs 84,200 for X cities, Rs 56,130 for Y cities and Rs 28,070 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 3,16,370. HRA would be Rs 94,910 for X cities, Rs 63,270 for Y cities and Rs 31,640 for Z cities.
If the fitment factor is 2.0, the revised basic pay would be Rs 2,46,200. HRA would be Rs 73,860 for X cities, Rs 49,240 for Y cities and Rs 24,620 for Z cities.
If the fitment factor is 2.1, the revised basic pay would increase to Rs 2,58,510. HRA would be Rs 77,550 for X cities, Rs 51,700 for Y cities and Rs 25,850 for Z cities.
With a fitment factor of 2.28, the revised basic pay would become Rs 2,80,670. HRA would be Rs 84,200 for X cities, Rs 56,130 for Y cities and Rs 28,070 for Z cities.
At a fitment factor of 2.57, the revised basic pay would rise to Rs 3,16,370. HRA would be Rs 94,910 for X cities, Rs 63,270 for Y cities and Rs 31,640 for Z cities.