8th CPC HRA Calculator

The 8th CPC HRA calculator computes your House Rent Allowance under the 8th Pay Commission. HRA is a significant component of your salary, especially if you live in a metro city.

How HRA is calculated under 8th CPC

HRA is calculated as a percentage of your new basic pay:

New HRA = New Basic Pay x HRA Rate

HRA by city category (at 1.92x fitment)

Level New Basic HRA X (24%) HRA Y (16%) HRA Z (8%)
Level 1 Rs 34,560 Rs 8,294 Rs 5,530 Rs 2,765
Level 6 Rs 67,968 Rs 16,312 Rs 10,875 Rs 5,437
Level 10 Rs 1,07,712 Rs 25,851 Rs 17,234 Rs 8,617
Level 13 Rs 2,27,520 Rs 54,605 Rs 36,403 Rs 18,202
Level 18 Rs 4,80,000 Rs 1,15,200 Rs 76,800 Rs 38,400

HRA increase: 7th CPC vs 8th CPC

Level Old HRA (Y, 16%) New HRA (Y, 16%) Increase
Level 1 Rs 2,880 Rs 5,530 +91.9%
Level 6 Rs 5,664 Rs 10,875 +91.9%
Level 10 Rs 8,976 Rs 17,234 +91.9%
Level 13 Rs 18,960 Rs 36,403 +91.9%
Level 18 Rs 40,000 Rs 76,800 +91.9%

HRA increases by the same percentage as basic pay (92% at 1.92x fitment) because HRA is a fixed percentage of basic.

City classification

X cities (24% HRA)

Y cities (16% HRA)

Z cities (8% HRA)

HRA tax exemption

HRA is partially tax-exempt under Section 10(13A) of the Income Tax Act. The exemption is the minimum of:

  1. Actual HRA received
  2. 50% of basic (X cities) or 40% of basic (Y/Z cities)
  3. Rent paid minus 10% of basic

Under the 8th CPC, your HRA exemption may increase because both HRA received and basic pay increase. However, the exemption formula remains the same.

HRA and government accommodation

If you live in government quarters, you do not receive HRA. The license fee for government quarters may be revised under the 8th CPC.

Disclaimer

HRA calculations are based on estimated fitment factors and current HRA rates. The 8th CPC may revise HRA rates. Actual figures will be determined by the official notification.

Official rate: 60% (effective Jan 2026)
1.92x Conservative 1.83x · Consensus 1.92x · Parity 2.57x · Max demand 2.86x
Level 1-5: Rs 1,350 | Level 6-8: Rs 3,600 | Level 9+: Rs 7,200

Formula

New HRA = New Basic x HRA Rate
X City: 24% of new basic
Y City: 16% of new basic
Z City: 8% of new basic

Example

Current Basic: Rs 50,000, Fitment: 1.92x, Y City (16%) 7th CPC HRA: 50,000 x 16% = Rs 8,000/month 8th CPC HRA: 96,000 x 16% = Rs 15,360/month Increase: +Rs 7,360/month (+92%)

How to Use

  1. Enter your current basic pay
  2. Select your HRA city type (X/Y/Z)
  3. Adjust the fitment factor
  4. The HRA row shows old vs new HRA

Frequently Asked Questions

How is HRA calculated under 8th CPC?

HRA is calculated as a percentage of your new basic pay: 24% for X cities (metros), 16% for Y cities (tier-2), and 8% for Z cities (rural). At 1.92x fitment, HRA increases by 92% because it is a fixed percentage of basic.

Which cities are X cities for HRA?

X cities (24% HRA) include Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad. Y cities (16% HRA) include Pune, Surat, Jaipur, Lucknow, and other tier-2 cities. Z cities (8% HRA) are all other areas.

Is HRA tax-exempt under 8th CPC?

HRA is partially tax-exempt under Section 10(13A). The exemption is the minimum of: actual HRA, 50% of basic (X cities) or 40% (Y/Z cities), or rent paid minus 10% of basic. The formula remains the same under 8th CPC.