Jul 16, 2026, 12:42:34 PM IST

The 8th Pay Commission has concluded its stakeholder meetings in Kolkata and extended the deadline for government departments to submit employee data till July 31, 2026. As the Commission prepares its recommendations, central government employees are keenly awaiting revisions in basic pay and allowances, including House Rent Allowance (HRA).

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Once the 8th Pay Commission revises basic salaries, allowances such as HRA, Transport Allowance (TPTA) and Child Education Allowance (CEA) are also expected to be revised. Since HRA is calculated as a percentage of basic pay, any increase in basic salary through a higher fitment factor will automatically increase HRA. Employee organisations have also demanded that the maximum HRA be raised to 40% of basic pay.

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A higher fitment factor results in a higher revised basic salary, which in turn increases HRA even if the HRA percentage remains unchanged. For example, a Level 2 employee with a basic pay of Rs 19,990 currently receives Rs 5,957 as HRA in an X-category city (30%). At a 2.0 fitment factor, the estimated HRA becomes Rs 11,914, while at a 2.28 fitment factor, it increases to about Rs 13,582.

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As per the 7th Pay Commission Pay Matrix, Level 14-16 employees are among the senior-most central government officers, including Joint Secretaries, Additional Secretaries and Secretaries. Their current basic pay ranges from Rs 1,44,200 to Rs 2,05,400.

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The table above shows the estimated HRA for Level 14 employees at fitment factors of 2.0, 2.1, 2.28, and 2.57.

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The table above shows the estimated HRA for Level 15 employees at fitment factors of 2.0, 2.1, 2.28, and 2.57.

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The table above shows the estimated HRA for Level 16 employees at fitment factors of 2.0, 2.1, 2.28, and 2.57.

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According to BankBazaar's estimates, HRA could reach nearly Rs 1.93 lakh per month for Level 18 employees at a 2.57 fitment factor, assuming the existing HRA structure and the corresponding revised basic pay. The HRA estimates shown for Level 14-16 employees are based on the same assumptions. The actual HRA will depend on the fitment factor and HRA rates finally recommended by the 8th Pay Commission and approved by the government.

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