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As the festival of Diwali approaches, the discussion about salary, allowances and bonuses is in full swing among government employees. These days the most talked about 8th Pay Commission of. There is only one question in the mind of every employee – what will be the fitment factor this time? How much will the basic salary increase? And what about the allowances? Come, in this news we tell you all the information in simple language.

Fitment Factor and Salary Mathematics

The 8th Pay Commission is going to bring a big gift for government employees. It is discussed that this time fitment factor Can be fixed between 1.92 to 2.86. Fitment factor is the coefficient by which the new salary is determined by multiplying the existing basic salary. based on this Dearness Allowance (DA), House Rent Allowance (HRA) And other allowances are fixed. It is reported that this time DA can be added to the basic salary, while HRA will be decided according to the old formula.

How is HRA decided?

House Rent Allowance (HRA) It is an important part of the salary of government employees. It is given keeping in mind the living expenses of the employee. HRA rates depend on the category of cities:

• X category (Metro cities like Delhi, Mumbai): 27%
• Y category (Medium cities like Lucknow, Pune): 18%
• Z category (small town cities): 9%

These rates are decided on the basis of the basic salary of the employee. That is, the higher the basic salary, the higher the HRA.

What is the rule for increasing HRA?

Under the 7th Pay Commission, the government had decided that when Dearness Allowance (DA) If it exceeds 25%, then HRA rates will also be changed. In July 2021, the Cabinet Committee headed by Prime Minister Narendra Modi had approved increasing DA to 28%. After this the Finance Ministry revised the HRA rates. Earlier these rates were 24%, 16% and 8%, which were increased to 27%, 18% and 9%.

What if the fitment factor is 2.86?

If the fitment factor is fixed at 2.86 in the 8th Pay Commission, then there will be a big jump in the basic salary of the employees. For example, if an employee’s current basic salary is ₹20,000, the new salary can be ₹57,200 with a fitment factor of 2.86. With this, in an X category city his HRA can reach ₹ 15,444. That is, a huge increase in salary and allowances is expected.

Mathematics of salary and HRA in different cities

Below we are giving the calculation of estimated basic salary and HRA according to different pay matrices and cities. Keep in mind, these figures are based on estimates, because no official announcement has been made by the government on the 8th Pay Commission yet. But it is believed that soon there may be good news for the employees.