How much HRA and basic salary may increase after the 8th Pay Commission, depending on the city? Learn the calculation.
8th Pay Commission: With the implementation of the 8th Pay Commission, employees' basic salary and HRA will increase. There will be differences depending on the city and level. Learn the calculation.
8th Pay Commission: The 8th Pay Commission is going to be implemented from January 1, 2026. The question on everyone's mind is how much their basic salary will increase after the implementation of the 8th Pay Commission and how much HRA (House Rent Allowance) they will receive. This time, everyone wants to know what the fitment factor will be.
And based on this, how much will the basic salary and other allowances increase? It is being reported that the fitment factor could be around 2.86. The increase in basic salary will also benefit from allowances like HRA and DA. HRA will be higher in larger cities, while lower in smaller cities. Learn the complete calculation.
How much will the basic pay increase?
Following the implementation of the 8th Pay Commission, employees' basic salaries will increase. Reports indicate that the fitment factor will be 2.86. Following this, the current basic pay could increase by approximately three times. For example, if an employee's current basic pay is ₹20,000, the new basic pay could be approximately ₹57,200. Consequently, the salaries of lower-grade employees will also increase significantly. The increase in basic pay will also benefit other allowances, such as DA and HRA. This change will help meet inflation and daily needs.
HRA Increase by City
HRA, or house rent allowance, is determined by city. In X-category metropolises, the HRA will be 27%, in Y-category medium cities, 18%, and in Z-category small cities, 9%. The 8th Pay Commission indicates that along with the increase in basic salary, the HRA will also increase in the same proportion. This means that rent burdens in larger cities will be reduced, and employees' financial situation will be strengthened. While the percentage may be lower in smaller cities, this change will provide relief to employees from inflation and other expenses.
Know the full calculation
Let's assume the 8th Pay Commission will have a 2.86 fitment factor. Let's calculate this for Levels 1 to 3. If the current basic salary in Level 1 is ₹18,000, the new basic salary will be approximately ₹51,480. Based on this, the HRA in Z, Y, and X category cities will be approximately ₹4,633, ₹9,266, and ₹13,890. In Level 2, the new basic salary will be ₹56,914, for the current basic salary of ₹19,900.
The HRA will reach approximately ₹5,122, ₹10,244, and ₹15,366. In Level 3, the basic salary of ₹21,700 will increase to ₹62,062, and the HRA will be approximately ₹5,586, ₹11,171, and ₹16,758 in Z/Y/X cities. Official figures have not yet been released by the government. These figures are subject to change.
