8th Pay Commission HRA Calculation: House rent allowance (HRA) is an important component for central govt employees’ basic salaries. It depends on an individual’s basic pay and the rating of the city the employee resides in. HRA forms quite a substantial part of an employeee’s salary, and in the old tax regime, they can also claim tax benefits against it. With the 8th Pay Commission formation just around the corner and central govt employees keenly waiting for their salary revision, they also expect a significant revision in their HRA.
The 7th Pay Commission HRA rates are 8 per cent of basic pay (for Z class cities), 16 per cent of basic pay (for Y class cities) and 24 per cent of basic pay (for X class cities).
When the DA touched the 50 per cent limit, HRA rates were revised to 10 per cent (Z class), 20 per cent (Y class), and 30 per cent (X class), respectively.
Under no limits, these rates can be less than Rs 1,800 (Z class), Rs 3,600 (Y class) and Rs 5,400 (X class).
In our write-up, see estimates of revised HRA amounts for Level 1-7 employees at 1.92, 2.08 and 2.28 fitment factors. (Note: We are calculating HRA at 8 per cent, 16 per cent and 24 per cent rates, respectively).
Level 1 (basic pay Rs 18,000)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 1,440 | ₹ 2,764.80 | ₹ 2,995.20 | ₹ 3,283.20 |
| At 16% | ₹ 2,880 | ₹ 5,529.60 | ₹ 5,990.40 | ₹ 6,566.40 |
| At 24% | ₹ 4,320 | ₹ 8,294.40 | ₹ 8,985.60 | ₹ 9,849.60 |
Level 2 (basic pay Rs 19,900)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 1,592 | ₹ 3,056.64 | ₹ 3,311.36 | ₹ 3,629.76 |
| At 16% | ₹ 3,184 | ₹ 6,113.28 | ₹ 6,622.72 | ₹ 7,259.52 |
| At 24% | ₹ 4,776 | ₹ 9,169.92 | ₹ 9,934.08 | ₹ 10,889.28 |
Level 3 (basic pay Rs 21,700)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 1,736 | ₹ 3,333.12 | ₹ 3,610.88 | ₹ 3,958.08 |
| At 16% | ₹ 3,472 | ₹ 6,666.24 | ₹ 7,221.76 | ₹ 7,916.16 |
| At 24% | ₹ 5,208 | ₹ 9,999.36 | ₹ 10,832.64 | ₹ 11,874.24 |
Level 4 (basic pay Rs 25,500)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 2,040 | ₹ 3,916.80 | ₹ 4,243.20 | ₹ 4,651.20 |
| At 16% | ₹ 4,080 | ₹ 7,833.60 | ₹ 8,486.40 | ₹ 9,302.40 |
| At 24% | ₹ 6,120 | ₹ 11,750.40 | ₹ 12,729.60 | ₹ 13,953.60 |
Level 5 (basic pay Rs 29,200)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 2,336 | ₹ 4,485.12 | ₹ 4,858.88 | ₹ 5,326.08 |
| At 16% | ₹ 4,672 | ₹ 8,970.24 | ₹ 9,717.76 | ₹ 10,652.16 |
| At 24% | ₹ 7,008 | ₹ 13,455.36 | ₹ 14,576.64 | ₹ 15,978.24 |
Level 6 (basic pay Rs 35,400)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 2,832 | ₹ 5,437.44 | ₹ 5,890.56 | ₹ 6,456.96 |
| At 16% | ₹ 5,664 | ₹ 10,874.88 | ₹ 11,781.12 | ₹ 12,913.92 |
| At 24% | ₹ 8,496 | ₹ 16,312.32 | ₹ 17,671.68 | ₹ 19,370.88 |
Level 7 (basic pay Rs 44,900)
| Current HRA rate | Current HRA | Revised HRA at 1.92 fitment factor | Revised HRA at 2.08 fitment factor | Revised HRA at 2.28 fitment factor |
| At 8% | ₹ 3,592 | ₹ 6,896.64 | ₹ 7,471.36 | ₹ 8,189.76 |
| At 16% | ₹ 7,184 | ₹ 13,793.28 | ₹ 14,942.72 | ₹ 16,379.52 |
| At 24% | ₹ 10,776 | ₹ 20,689.92 | ₹ 22,414.08 | ₹ 24,569.28 |
(Disclaimer: These are projections. Actual revised amounts may vary.)