8th Pay Commission: Level 15-18 employees may get monthly HRA of up to ₹1.93 lakh if 2.57 fitment factor is approved
The 8th Pay Commission was constituted on 3 November 2025, after receiving initial approval in January 2025. Ranjana Prakash Desai was appointed the chairman of the Commission, along with Prof Pulak Ghosh and Pankaj Jain, as part-time members and member secretary, respectively.
The Commission has been given 18 months by the government to consult with unions, associations and other stakeholders and to submit its recommendations on salary revisions, allowances and pension reforms.
The 8th Pay Commission is expected to revise the salaries of central government employees through a new fitment factor. The most recent fitment factor for the 7th Pay Commission stands at 2.57.
As House Rent Allowance (HRA) is calculated as a percentage of basic pay, any increase in the revised basic pay would automatically raise the HRA amount. Employees posted in X, Y and Z category cities currently receive HRA at 30%, 20% and 10% of their basic pay, respectively.
Estimated HRA for Level 15-18 employees under different fitment factors
|
Level |
Current Basic Pay |
Fitment Factor |
Revised Basic Pay |
HRA (X City – 30%) |
HRA (Y City – 20%) |
HRA (Z City – 10%) |
|---|---|---|---|---|---|---|
| 15 | ₹1,82,600 | 2.00 | ₹3,65,200 | ₹1,09,560 | ₹73,040 | ₹36,520 |
| 2.10 | ₹3,83,460 | ₹1,15,040 | ₹76,690 | ₹38,350 | ||
| 2.28 | ₹4,16,330 | ₹1,24,900 | ₹83,270 | ₹41,630 | ||
| 2.57 | ₹4,69,280 | ₹1,40,780 | ₹93,860 | ₹46,930 | ||
| 16 | ₹2,05,400 | 2.00 | ₹4,10,800 | ₹1,23,240 | ₹82,160 | ₹41,080 |
| 2.10 | ₹4,31,340 | ₹1,29,400 | ₹86,270 | ₹43,130 | ||
| 2.28 | ₹4,68,310 | ₹1,40,490 | ₹93,660 | ₹46,830 | ||
| 2.57 | ₹5,27,880 | ₹1,58,360 | ₹1,05,580 | ₹52,790 | ||
| 17 | ₹2,25,000 | 2.00 | ₹4,50,000 | ₹1,35,000 | ₹90,000 | ₹45,000 |
| 2.10 | ₹4,72,500 | ₹1,41,750 | ₹94,500 | ₹47,250 | ||
| 2.28 | ₹5,13,000 | ₹1,53,900 | ₹1,02,600 | ₹51,300 | ||
| 2.57 | ₹5,78,250 | ₹1,73,480 | ₹1,15,650 | ₹57,820 | ||
| 18 | ₹2,50,000 | 2.00 | ₹5,00,000 | ₹1,50,000 | ₹1,00,000 | ₹50,000 |
| 2.10 | ₹5,25,000 | ₹1,57,500 | ₹1,05,000 | ₹52,500 | ||
| 2.28 | ₹5,70,000 | ₹1,71,000 | ₹1,14,000 | ₹57,000 | ||
| 2.57 | ₹6,42,500 | ₹1,92,750 | ₹1,28,500 | ₹64,250 |
Source: BankBazaar.com (Illustrative estimates)
How does fitment factor affect HRA?
To better appreciate the possible changes, understand the relationship between the fitment factor and HRA. The fitment factor is a multiplier used to arrive at the revised basic pay. These figures were 2.57 and 1.86 in the last two pay commissions, respectively.
Since HRA is calculated as a percentage of basic pay, a higher fitment factor directly results in a higher HRA.
A Level 18 employee with a current basic pay of ₹2.5 lakh could see the revised basic pay increase to ₹6.43 lakh if a fitment factor of 2.57 is adopted. In that case, the monthly HRA for employees posted in X-category cities could rise to ₹1.93 lakh, while employees in Y and Z cities could receive around ₹1.29 lakh and ₹64,250, respectively.
8th Pay Commission: Final HRA will depend on government’s decision
The estimates are based on assumed fitment factors of 2, 2.1, 2.28 and 2.57, and on existing HRA rates of 30%, 20%, and 10% for X, Y and Z category cities, respectively.
This has been done in line with the fitment factor of the 7th Pay Commission to provide employees with an estimate of possible changes in their salaries post-implementation of the recommendations.
The 8th Pay Commission is expected to table its recommendations by May-June 2027, and the union government will take a call on the fitment factor, revised pay matrix, and HRA structure.
In early July, the 8th Pay Commission completed consultations in Kolkata, West Bengal, and Bhubaneswar, Odisha, with meetings in other cities to be held soon.
Disclaimer: The above calculations are illustrative estimates based on assumed fitment factors and prevailing HRA rates. The actual revised pay and HRA may differ depending on the 8th Pay Commission’s final recommendations and the government’s decision.
