look news india
The coming time may bring a big financial gift for more than 50 lakh central government employees and more than 69 lakh pensioners. Since the formation of the 8th Pay Commission, discussions regarding increase in salary and allowances have been very intense in the government corridors.
Meanwhile, the most curiosity is being seen regarding House Rent Allowance (HRA). According to the latest financial estimates and reports, if the government gives green signal to the formula of implementing Fitment Factor of 2.0 in the new Pay Commission, then there may be a bumper jump in the HRA of employees from Level-1 to Level-5 of the pay matrix. Depending on different cities, this allowance can reach a maximum of ₹ 10,800 to ₹ 17,520 per month.
After all, how is HRA of central employees decided?
House Rent Allowance (HRA) is an important part of the basic salary of central employees, which is given to them by the government to meet the expenses of rented house. Another big advantage of this is that the employees living in rented houses income tax act Under the rules of Income Tax Act, you can also claim tax exemption on this allowance.
The government has divided all the cities of the country into three major categories on the basis of population, on the basis of which HRA rates are decided:
-
X Category (Metros): Big cities like Delhi, Mumbai, Kolkata, Bengaluru with population of more than 50 lakhs.
-
Y Category (Tier-2 Cities): Big and developed cities with population ranging from 5 lakh to 50 lakh.
-
Z Category (Tier-3/Rural): Small cities, towns or rural areas with a population of less than 5 lakh.
How much HRA will level 1 to 5 employees get? (possible calculation)
If the fitment factor of 2.0 is implemented in the upcoming 8th Pay Commission, there will be a huge increase in the in-hand salary of lower and middle level (level 1 to 5) employees. According to the probable government data, the monthly HRA available according to the city category could be as follows:
| Pay Matrix Level | X Category Metros (Maximum) | Y category cities (medium) | Z category small towns (minimum) |
| Level-1 (Beginner Level) | ₹10,800 / month | ₹7,200 / month | ₹3,600 / month |
| Level-5 (Medium Level) | ₹17,520 / month | ₹11,680 / month | ₹5,840 / month |
Note: This increase is estimated on the basis of Fitment Factor 2.0, which will give a big relief to the monthly budget of the employees.
What are the big demands of employee organizations from the government?
In view of the ever increasing backbreaking inflation in various cities of the country, the Central Employees Organizations are continuously putting pressure on the government with their demands. All India NPS Employees Federation (AINPSEF) In its suggestions submitted to the government, it has said that the current allowances are inadequate in the face of rising inflation.
Main demands of the organization:
-
Increase in percentage rate of HRA: The organization has a direct demand that the rates of HRA should be revised. 36 percent in X category cities, 24 percent in Y category And 12 percent in Z category Let it be done.
-
Linkage to Dearness Allowance (DA): Organizations also have a strong argument that as soon as the government increases the Dearness Allowance (DA), HRA should also be revised automatically in the same proportion and time, so that there is no additional burden of inflation on the pockets of the employees.
When will the recommendations of the 8th Pay Commission be implemented on the ground?
Let us tell you that the 8th Pay Commission has completed its official functioning and review work. 3 November 2025 Has started from. However, looking at the history of previous Pay Commissions and the complex way of working, it takes a very long time to collect data from all departments and prepare the final draft report.
Economic and market experts believe that the Eighth Pay Commission will submit its final and detailed report. February to April 2027 Can hand over to the Central Government between. After this, this report will be sent to the Union Cabinet for approval, only after which the new increased rates and arrears will start coming into the accounts of the employees.