Good news for central employees may be revealed, as their salary is expected to increase after the 8th Pay Commission is implemented. Employees and pensioners have long been expected to increase their salary and pension during every pay commission. Now, the discussion about the 8th Pay Commission has intensified, and when it is implemented, employees are expecting an increase in their salary. In this report, we will give you important information related to the 8th Pay Commission, especially about the possible changes in HRA i.e. House Rent Allowance.
Changes in HRA rates in 8th Pay Commission?
Each pay commission changes the salary structure of employees, in which rates of dearness allowance (DA), Fitment Factor and HRA (House Rent Allowance) are also modified. Especially the employees are eyeing the HRA, as it affects their month’s expenses. There is a possibility of changes in the rates of HRA when the 8th Pay Commission is implemented.
How do the rates of HRA change?
The rates of HRA were revised in the previous pay commissions. For example:
The 6th Pay Commission had HRA rates 30% (X City), 20% (Y city) and 10% (Z cities).
The 7th Pay Commission had reduced these rates to 24%, 16%, and 8%. Later, when DA reached 50%, HRA was re -increased to 30%, 20%, and 10%.
This means that the rates of HRA are directly connected to DA and basic salary. When the 8th Pay Commission is implemented, the rates of HRA will also be revised on the basis of basic salary and DA.
HRA increase in amount
A significant change may be that the fitment factor is increased to 1.92. This would mean that the new pay base will be fixed by multiplying the existing basic salary of the employee by 1.92. For example, if an employee has an existing salary of ₹ 30,000, then under the new pay base, his salary will be ₹ 30,000 × 1.92 = ₹ 57,600. Calculation of HRA will also be done with this new pay base, which will also increase the HRA amount.
Possibility of change in HRA according to experts
Experts of Pay Commission believe that the 8th Pay Commission is more likely to change the rates of HRA. There is a discussion to modify the rates of HRA, and it is expected that it will be paired with DA. If this happens, not only will the employees get more money in their hands, but also the possibility of increasing DA to 25% and 50%.
How is the salary amended in the pay commission?
Pay Commission is done on the basis of pay modification fitment factor. The fitment factor is the multiplier on the basis of which the basic salary and pension of the employees are revised. This fitment factor may vary from every pay commission. The 8th Pay Commission is expected to increase the fitment factor to 1.92.
Who will decide the fitment factor?
The fitment factor is decided on the basis of the recommendations of the Pay Commission. However, the central government can also modify it, as it was in the 6th Pay Commission, when the government increased the fitment factor to 1.92.
conclusion
There are signs of increase in salary after the implementation of the 8th Pay Commission for central employees. Changes in the rates of HRA, increase of fitment factor and increase in DA can lead to significant improvement in employees’ salary. However, formal announcements are yet to be made by the government for this. The impact of the recommendations of the 8th Pay Commission can have a profound impact on the lifestyle of the employees, which will improve their economic security level.