Jul 13, 2026, 09:55:25 AM IST

HRA is calculated as a percentage of an employee's basic pay. Once the 8th Pay Commission revises basic salaries, HRA will also rise, even if the existing HRA rates remain unchanged. The actual increase will depend on the fitment factor approved by the government and the city where the employee is posted.

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Currently, HRA is paid at 30% (X cities), 20% (Y cities) and 10% (Z cities) after the DA crossed 50%. Several employee organisations have argued these rates are inadequate and have proposed higher HRA slabs such as 36%, 24%, 12% or even 40%, 35% and 30%, depending on the organisation.

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A Level 2 employee with a basic pay of ₹19,900 could receive HRA of ₹11,940- ₹15,340 in X cities, ₹7,960-₹10,230 in Y cities, and ₹3,980-₹5,110 in Z cities, depending on whether the fitment factor is 2.0, 2.1, 2.28 or 2.57.

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For a Level 3 employee with a basic pay of ₹21,700, estimated HRA in X cities could range from ₹13,020 to ₹16,730. HRA in Y cities may increase from ₹8,680 to ₹11,150, while Z city employees could receive between ₹4,340 and ₹5,580.

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A Level 4 employee with a current basic pay of ₹25,500 could see HRA rise to ₹15,300-₹19,660 in X cities, ₹10,200-₹13,110 in Y cities, and ₹5,100-₹6,550 in Z cities, depending on the fitment factor adopted.

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For Level 5 employees, HRA in X cities could increase from ₹17,520 to ₹22,510. Employees in Y cities may receive ₹11,680-₹15,010, while those in Z cities could get ₹5,840-₹7,500, based on the assumed fitment factor.

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A Level 6 employee with a basic pay of ₹35,400 could receive HRA ranging from ₹21,240 to ₹27,290 in X cities, ₹14,160-₹18,200 in Y cities, and ₹7,080-₹9,100 in Z cities, depending on the fitment factor.

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For a Level 7 employee, estimated HRA in X cities could rise from ₹26,940 to ₹34,620. Employees posted in Y cities may receive ₹17,960-₹23,080, while those in Z cities could get ₹8,980-₹11,540.

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A Level 8 employee with a basic pay of ₹47,600 could see HRA increase from ₹28,560 to ₹36,700 in X cities. In Y cities, HRA may range from ₹19,040-₹24,470, while Z city employees could receive ₹9,520-₹12,230.

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For Level 9 employees, estimated HRA in X cities could increase from ₹31,860 at a 2.0 fitment factor to ₹40,940 at 2.57. In Y cities, HRA could range from ₹21,240- ₹27,290, while Z city employees may receive ₹10,620-₹13,650.

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A Level 10 employee with a current basic pay of ₹56,100 could receive HRA of ₹33,660-₹43,250 in X cities, ₹22,440-₹28,840 in Y cities, and ₹11,220-₹14,420 in Z cities, depending on the fitment factor.

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