8th Pay Commission HRA Calculator: How much will your basic salary and HRA increase as the fitment factor changes? Complete calculations from Level 1 to 4

The meetings of the 8th Pay Commission with the stakeholders have been completed on 10 July 2026 in Kolkata. In this discussion and the memorandums submitted, there has been a strong demand from the central employee organizations to increase the House Rent Allowance (HRA). At present, employees are getting HRA at the rate of 30% in X category cities, 20% in Y and 10% in Z. Since HRA is calculated on the basis of basic salary, there will automatically be a big jump in HRA as soon as the basic salary increases in the 8th Pay Commission.

How was the mathematics of HRA changed in the 7th Pay Commission?

In the initial days of the 7th Pay Commission, the HRA rates were fixed at 27% (X), 18% (Y) and 9% (Z). According to the rules, as soon as Dearness Allowance (DA) reached the 50% mark in January 2024, these rates were increased to 30%, 20% and 10% respectively.

Why are employee unions demanding more HRA?

Central employee organizations believe that the HRA available today is very low, especially for Group C and Group D employees. House rents are skyrocketing in big cities. This is the reason why most of the organizations including the National Council-Joint Consultative Machinery (NC-JCM Staff Side) have demanded to increase HRA to 40%. Along with this, a unique proposal has also been made that HRA should be directly linked to DA and whenever DA reaches 25%, it should be revised. Due to this, as DA increases in future, HRA will also increase automatically.

Estimated mathematics of HRA based on various fitment factors

If the existing HRA rates (30%, 20% and 10%) are considered as the basis, then the change in HRA of the employees after applying different fitment factors (ranging from 2.0 to 2.57) can be easily understood from the levels given below:

1. Level 1 Employee (Current Basic Salary: ₹18,000)

Note: Levels 1 to 10 range from Group D staff to entry-level Group A officers.

2. Level 2 Employees (Current Basic Salary: ₹19,900)

3. Level 3 Employees (Current Basic Salary: ₹21,700)

4. Level 4 Employees (Current Basic Salary: ₹25,500)

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