The 8^th Pay Commission’s meeting with stakeholders in Kolkata will end today (Friday, July 10, 2026). In all 8^th CPC meetings and memorandum submissions, employee bodies have prominently raised demand for increasing house rent allowance (HRA) percentages from the current rates of 30% (X cities), 20% (Y cities) and 10% (Z cities). HRA forms a major chunk of the salary of a central government employee. Once the 8^th Pay Commission revises basic salaries of these employees, HRA will also increase as it is given as a percentage of the basic salary. But how much can it increase if HRA rates remain the same and the 8^th Pay Commission decides on a 2.0, 2.1, 2.28 or a 2.57 fitment factor? Find out here!

HRA in 7^th Pay Commission

In the 7^th Pay Commission, the ranges for HRA were 27% (X), 18% (Y) and 9% (Z), respectively, which increased to 30%, 20% and 10% after the dearness allowance (DA) reached 50% in January 2024.

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8^th Pay Commission: Employee bodies demand higher HRA

Many central government employee bodies have a consensus that the current rates of HRA are inadequate for Group D or C employees as rents are much higher in big cities compared to the HRA amounts these employees get. So, they are demanding that the 8^th Pay Commission increase these rates.

In the table you can see, that most organisations, including National Council - Joint Consultative Machinery (staff side), the main central government employee body, have been demanding a 40% HRA on the higher side, while most of them also want HRA to be merged with DA whenever dearness allowance reaches 25%.

Their logic behind HRA’s merger with DA is that HRA will keep rising every six months if it is aligned with DA since Centre revises DA once in six months.

Also Read: 8th Pay Commission salary calculator: Estimated arrears for level 2-4 employees at 2.28, 2.57, 2.86 fitment factors

Why fitment factor is a key player in 8^th Pay Commission HRA revision

Since HRA is given on the basis of the basic pay of an employee, a high revised basic pay in the 8^th Pay Commission means a high HRA rate.

For example, a Level 1 employee with a Rs 18,000 basic pay gets Rs 5,400 (30% of basic pay) as HRA if they reside in an X category city like Delhi. If the fitment factor is 2.0 and the HRA rate remains at 30%, their revised HRA will be Rs 10,800. However, if the fitment factor is 2.28, the revised HRA will be Rs 12,312.

How HRA of Level 1-10 employees can change at 2.0, 2.1, 2.28 and 2.57 fitment factors in 8^th Pay Commission

As per the 7^th Pay Commission, Level 1-10 central government employees are from Group D to entry-level civil servants (Group A officers). Their starting basic pay is in the range of Rs 18,000-Rs 56,100.

Bankbazaar presents calculations of estimated revised HRA of central government employees at 2.0, 2.1, 2.28 and 2.57 fitment factors in the 8^th Pay Commission.

For X, Y and Z categories, Bankbazaar’s HRA ranges are 30%, 20% and 10%, respectively.

8^th Pay Commission: HRA estimates for Level 1-10 employees at 2, 2.1, 2.28 and 2.57 fitment factors

8^th Pay Commission HRA estimated for Level 1 (basic pay- Rs 18,000) employees

8^th Pay Commission HRA estimated for Level 2 (Basic pay Rs 19,900) employees

8^th Pay Commission HRA estimated for Level 3 (Basic pay Rs 21,700) employees

8^th Pay Commission HRA estimated for Level 4 (Basic Pay Rs 25,500) employees

8^th Pay Commission HRA estimated for Level 5 (Basic pay Rs 29,200) employees

8^th Pay Commission HRA estimated for Level 6 (Basic pay Rs 35,400) employees

8^th Pay Commission HRA estimated for Level 7 (Basic pay Rs 44,900) employees

8^th Pay Commission HRA estimated for Level 8 (Basic pay Rs 47,600) employees

8^th Pay Commission HRA estimated for Level 9 (Basic pay Rs 53,100) employees

8^th Pay Commission HRA estimated for Level 10 (Basic pay Rs 56,100) employees

Disclaimer: Illustrative HRA estimates are based on assumed fitment factors and HRA rates. Final pay and allowances may vary. Source: BankBazaar. com