How much will the basic salary and HRA of central employees increase after the implementation of the 8th Pay Commission? Estimated calculations from Level 1 to 10 and HRA of X, Y, Z cities and latest updates.
8th Pay Commission Salary Hike Calculator: Eighth Pay Commission remains the biggest and hottest topic of the moment for central employees. The demand for revision in salaries and allowances from government employee organizations is continuously increasing. There is only one question in the mind of every employee that when the new pay commission is implemented, how much will be the total increase in their basic salary and house rent allowance (HRA)? Let us know what effect it can have on employees from Level-1 to Level-10.
Why will HRA increase?
HRA is calculated completely on the basis of basic pay of the employee, so as soon as your basic salary is revised in the 8th Pay Commission, your HRA will also be revised. Will increase automatically, even if the existing HRA rates remain the same. This increase in salary will depend on the fitment factor approved by the government and the city category of your posting.
How much can HRA increase?
The dearness allowance (DA) of central employees has currently crossed 50%, after which the rates of HRA under the existing rules have been revised to 30% for X category cities, 20% for Y category and 10% for Z category. However, many central employee organizations and unions argue that these rates are too low considering the current inflation. The organizations have raised the demand before the government to increase the HRA slab in the new pay commission to 36%, 24% and 12% or as per the proposal of some organizations to 40%, 35% and 30%.
How does 8th Pay Commission Calculator work?
The final recommendations of the Eighth Pay Commission have not been released yet, so at present the approximate calculations are being done on the basis of different possible fitment factors. If you have an existing basic pay, the simple formula for the potential new basic pay is,
New Basic Pay = Existing Basic Pay × Fitment Factor
After this, HRA is calculated on the basis of new basic pay.
X category cities: 30%
Y category cities: 20%
Z category cities: 10%
Note: This is an approximate calculation. The final amount will depend on the fitment factor approved by the government and the recommendations of the Pay Commission.
8th CPC Calculator: Expected HRA from Level 1 to Level 10
Level-1
Current Basic Pay: ₹18,000
X City: Around ₹10,800 to ₹13,880
Y City: Around ₹7,200 to ₹9,250
Z City: Around ₹3,600 to ₹4,630
level 2
Current Basic Pay: ₹19,900
X City: ₹11,940 to ₹15,340
Y City: ₹7,960 to ₹10,230
Z City: ₹3,980 to ₹5,110
Level-3
Current Basic Pay: ₹21,700
X City: ₹13,020 to ₹16,730
Y City: ₹8,680 to ₹11,150
Z City: ₹4,340 to ₹5,580
Level-4
Current Basic Pay: ₹25,500
X City: ₹15,300 to ₹19,660
Y City: ₹10,200 to ₹13,110
Z City: ₹5,100 to ₹6,550
Level-5
Current Basic Pay: ₹29,200
X City: ₹17,520 to ₹22,510
Y City: ₹11,680 to ₹15,010
Z City: ₹5,840 to ₹7,500
Level-6
Current Basic Pay: ₹35,400
X City: ₹21,240 to ₹27,290
Y City: ₹14,160 to ₹18,200
Z City: ₹7,080 to ₹9,100
Level-7
Current Basic Pay: ₹44,900
X City: ₹26,940 to ₹34,620
Y City: ₹17,960 to ₹23,080
Z City: ₹8,980 to ₹11,540
Level-8
Current Basic Pay: ₹47,600
X City: ₹28,560 to ₹36,700
Y City: ₹19,040 to ₹24,470
Z City: ₹9,520 to ₹12,230
level-9
Current Basic Pay: ₹53,100
X City: ₹31,860 to ₹40,940
Y City: ₹21,240 to ₹27,290
Z City: ₹10,620 to ₹13,650
level-10
Current Basic Pay: ₹56,100
X City: ₹33,660 to ₹43,250
Y City: ₹22,440 to ₹28,840
Z City: ₹11,220 to ₹14,420
Which fitment factor is most discussed?
The government has not yet made any official announcement on the fitment factor. Possible figures like 2.0, 2.1, 2.28 and 2.57 are being discussed among experts and employee organizations. The final decision will come only after the recommendations of the Pay Commission and the approval of the government.
Can HRA rates also change?
The possibility cannot be ruled out. Many employee unions consider the current HRA slab to be low in line with inflation and are demanding an increase in it. If the government accepts this demand, then employees can get the benefit of not only increase in basic salary but also increase in HRA percentage.
What is the status of 8th Pay Commission now?
The 8th Pay Commission is continuing its work and taking suggestions from different employee organizations and pensioners. At present, no official announcement has been made regarding changes in fitment factor, new salary or HRA. Therefore, all the figures given above are estimates based on possible factors and not the final salary declared by the government.