8th Pay Commission: The rates of HRA i.e. House Rent Allowance have been revised with every pay commission. In the 6th Pay Commission, the rates of HRA were 30% (X city), 20% (Y city), 10% (Z city). The 7th Pay Commission revised them and the rates were fixed at 24%, 16%, 8%.
8th Pay Commission: There is good news for central employees. There will be a tremendous jump in their salary after the implementation of the 8th Pay Commission. The discussion of the 8th Pay Commission has now intensified. Every pay commission not only changes the salary structure, but also has a direct impact on the rates of dearness allowance (DA), fitment factor and most importantly HRA i.e. house rent allowance. In such a situation, the big question is whether there will be a change in the rates of HRA in the 8th Pay Commission? The answer is – very possible, and there are solid reasons behind it.
How do the rates of HRA change?
The rates of HRA i.e. House Rent Allowance have been revised with every pay commission. In the 6th Pay Commission, the rates of HRA were 30% (X city), 20% (Y city), 10% (Z city). The 7th Pay Commission revised them and the rates were fixed at 24%, 16%, 8%. But as soon as DA reached 50%, HRA was again increased to 30%, 20%, and 10%. This means that the rates of HRA are directly linked to DA and basic pay. Therefore, when the 8th Pay Commission will be implemented, the government will once again review the rates of HRA according to the basic pay and DA structure.
HRA amount will increase with new calculation
There is a discussion of increasing the fitment factor to 1.92 in the 8th Pay Commission. This means that the new pay base will be decided by multiplying the existing basic salary of the employee by 1.92. For example, if the current basic salary is ₹30,000, then the new salary will be ₹30,000 × 1.92 = ₹57,600. In such a situation, the calculation of HRA will also be done on the new basic, due to which the HRA amount will also increase.
Why are HRA rates revised?
1. Increase in inflation and rent
Rent also increases with inflation. To balance this, the government increases the HRA.
2. Change in basic-pay structure
The basic pay structure changes after the Pay Commission. The old HRA rates do not fit the new base, so it is necessary to revise them as well.
3. Change in the category of cities
The government updates the list of X, Y and Z cities from time to time, which affects the HRA. If the category of a city changes, then the HRA of the employees there is directly affected.
Will the rate of HRA change in the 8th Pay Commission? According to experts, there is a high possibility of change in the rates of HRA in the new Pay Commission. Every time a new Pay Commission is implemented, the HRA rates are revised. Currently, HRA was 30%, 20%, and 10%. There is a discussion that it can be revised and it will be linked with DA. This will not only increase the money in the hands of the employees, but there will also be a provision for its revision when DA becomes 25% and 50%. Which is still there.
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