News India Live, Digital Desk: Hra: With the implementation of the 8th Pay Commission announced by the Central Government in January 2025, there will be a significant change in the salary of central employees. Under the new Pay Commission, significant changes in the rules of dearness allowance (DA) and Housing Allowance (HRA) are proposed, which will be directly benefited by the employees.
DA merger in basic salary:
At present, 55% DA received by employees can be included in the basic salary when the new Pay Commission is implemented. It is worth noting that during the Seventh Pay Commission in 2016, 125% DA was merged into basic salary, after which the Count of DA started again. This time too, the salary structure will change completely with merger in the basic salary of DA.
HRRA rates will be amended:
Under the Eighth Pay Commission, there is also a possibility of amendment in the rates of HRA of employees. At present, according to the Seventh Pay Commission, HRA is prescribed 24%, 16% and 8% respectively for X, Y, Z category cities. On reaching DA 50%, these rates become 30%, 20% and 10%. The HRA rates in the Eighth Pay Commission will be replaced by basic pay and new DA structure.
Increase in salary from fitment factor:
The central government can determine the fitment factor in the new pay commission from 1.92 to 2.86. If the monthly salary of the employee is 30 thousand rupees, the basic salary will be Rs 57,600 if the 1.92 fitment factor is implemented. The minimum basic salary can increase from Rs 18,000 to Rs 51,480 when the fitment factor is 2.86. This is expected to increase the salary of central employees from 30% to 50%.
Government will take final decision:
The government will have the final decision in the new pay commission. At present, this is just a proposal and a detailed discussion is going on. The recent National Council (JCM) meeting considered issues like minimum wage, fitment factor, allowance, promotion policies and pension benefits. Employees’ organizations have been sought suggestions by May 20, on the basis of which the government will take a final decision.
Earlier, the fitment factor 2.57 came into force during the Seventh Pay Commission, which increased the minimum wage of employees from Rs 7,000 to Rs 18,000. It is expected that the salary increase in the Eighth Pay Commission will be even more impressive.
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