Big update regarding 8th Pay Commission! Not only the salary will increase, but there may be major changes in HRA, allowances and pension as well

• Big update regarding 8th Pay Commission!
• There may also be changes in HRA, allowances and pension
• How much HRA demands?

8th Pay Commission : A major update has come out regarding the eighth pay commission of the central government. Many people think that this commission is only for increasing the salary of the employees. But according to the official gazette announced by the government, this time not only the basic salary, but also various allowances, HRA, pension, gratuity and working methods are likely to undergo major changes.

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Higher than expected increase in House Rent Allowance (HRA) of government employees is likely. The main reason for this is that the house rent allowance is directly linked to your basic salary and the new pay commission is expected to increase the basic salary. House rent allowance is calculated on the basis of basic salary. Under the Eighth Pay Commission, various fitment factors like 2.0, 2.28 and 2.57 are being considered.

The commission, which was set up on November 3, 2025, has been given 18 months to submit its final report. Meanwhile, the Commission has held discussions with the concerned parties on 9th and 10th July 2026 at Bhubaneswar and Kolkata. Various suggestions have been invited in this regard.

How much will HRA increase?

For example the basic salary of a level-1 employee is currently ₹18,000. If 2.0 fitment factor is applied, their basic salary will be ₹36,000 and their House Rent Allowance (HRA) will be ₹10,800 from earlier ₹5,400. Similarly, if a fitment factor of 2.57 is applied to level-1 employees, their basic pay will increase from ₹18,000 to ₹46,260 and their HRA will increase by ₹13,880. Similarly, the HRA of level-10 employees for X-category cities can reach up to ₹43,250 per month.

What is the demand for HRA?

Central Government employees currently get House Rent Allowance (HRA) at three different rates depending on their place of posting:
30% of basic pay for X-category cities
20% for Y-category cities
10% for Z-category cities
But the All India NPS Employees Union and other organizations say the current rates are too low compared to the rapidly rising housing rents in metros like Delhi-NCR and Mumbai. They demand that the existing rates of house rent allowance be increased to 36% of basic salary for X-category cities, 24% for Y-category cities and 12% for Z-category cities. Some organizations have even demanded that it be increased to 40% for X-category cities.

The rules for pension, NPS, UPS and post-retirement gratuity will also be reconsidered by the commission. Emphasis will be given to solve the problems in various schemes and think about providing better benefits to the employees.

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