
NC-JCM demands HRA revision citing 80-120% rent surge since 2017. Two other unions propose tiered HRA rates. Commission report expected by early 2027.
The National Council – Joint Consultative Machinery (NC-JCM), one of three major employee groups representing central government workers, has told the 8th pay commission that house rent allowance (HRA) rates must be revised. In a memorandum, the union pointed out that rents in Delhi and Bengaluru have surged 80% to 120% since 2017. HRA was last set under the 7th pay commission and has not changed since.
A level 1 employee earning ₹18,000 in basic pay currently receives ₹4,860 a month as HRA at a 27% rate. Rent in most towns and cities is far higher than that amount, the union said.
NC-JCM is also pushing for a minimum basic pay of ₹69,000, a simplified salary structure, a 6% annual increment instead of the current 3%, and merged employee pay scales.
Two other employee bodies have submitted their own HRA proposals. The All India NPS Employees Federation (AINPSEF) proposed a three-tier structure: 36% for X-category cities, 24% for Y-category cities, and 12% for Z-category cities. It also recommended that HRA be raised every time dearness allowance is hiked. The Pragatisheel Shikshak Nyaya Manch (PSNM), which represents central government teachers, asked for HRA of up to 36% and a fitment factor in the range of 2.62 to 3.83.
Pensioners do not receive any HRA under current rules. NC-JCM has asked the commission to include them in the allowance for the first time.
The 8th pay commission is chaired by former Supreme Court Justice Ranjana Prakash Desai and includes former IAS officer Pankaj Jain as Member-Secretary and Professor Pulak Ghosh, a member of the Economic Advisory Council to the Prime Minister. It was constituted on Nov. 3, 2024. The panel is expected to submit its final recommendations around 18 months later. Based on that timeline, the earliest the report could land is February or April 2027.
Past pay commissions suggest that full implementation of any recommended hikes typically takes another two to three years. That means the new pay scales may not be in effect until 2029 or 2030.
Under tax rules, employees in metro cities can claim HRA exemption of up to 50% under Section 10(13A) of the old tax regime. The government earlier this year expanded the metro city list for HRA purposes to include Bengaluru, Hyderabad, Pune, and Ahmedabad alongside the traditional four of Delhi, Mumbai, Kolkata, and Chennai. The exemption is not available under the new tax regime.
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