Archive · 24 Jul 2026
8th Pay Commission: HRA Hikes Possible for Central Government Employees
The 8th Pay Commission, led by Ranjana Prakash Desai, is working on new salary rules for government employees.
They might get more money for rent, called HRA, if the government agrees to a higher fitment factor.
This factor is like a multiplier that increases their basic pay.
If the factor is 2.57, employees in big cities could get up to ₹1.93 lakh for rent.
The commission will talk to different groups and submit their suggestions by mid-2027.
The government will then decide if they agree with these suggestions.
The 8th Pay Commission was formed in November 2025 to revise salaries and allowances for central government employees.
A fitment factor of 2.57 could increase the basic pay and subsequently the HRA for employees at levels 15-18.
HRA is calculated as a percentage of basic pay, with current rates of 30% for X cities, 20% for Y cities, and 10% for Z cities.
The commission's recommendations are expected by May-June 2027, after consulting with various stakeholders.
The final decision on the fitment factor and HRA structure will be made by the union government.
- Who
- Central government employees, especially those at levels 15-18
- What
- Potential increase in House Rent Allowance (HRA) based on the 8th Pay Commission recommendations
- When
- Expected recommendations to be submitted by May-June 2027
- Where
- India, with consultations held in cities like Kolkata and Bhubaneswar
- Why
- To revise salaries, allowances, and pension reforms for central government employees
Employee Unions
Government
Fitment Factor
Employee Unions
Employee unions advocate for a higher fitment factor to significantly increase salaries and allowances, aiming for a factor of 2.57 to match inflation and cost of living.
Government
The government may prefer a lower fitment factor to control expenditure and maintain fiscal discipline, potentially opting for a factor below 2.57.
HRA Calculation
Employee Unions
Unions push for higher HRA percentages to reflect the actual cost of living in different cities, arguing for increased percentages for all city categories.
Government
The government may maintain or slightly adjust the current HRA percentages to balance employee benefits with budget constraints.
- Chairman of the 8th Pay Commission
- Ranjana Prakash Desai
- Member Secretary
- Pankaj Jain
- Part-time Members
- Prof Pulak Ghosh
- Expected Submission Date
- May-June 2027
- Current Fitment Factor (7th Pay Commission)
- 2.57
- HRA for X Category Cities
- 30%
- HRA for Y Category Cities
- 20%
- HRA for Z Category Cities
- 10%