Major organisations representing central government employees and pensioners are pushing for an increase in the family unit count, higher house rent allowance (HRA) and transport allowance (TPTA), and the merger of dearness allowance (DA) with basic pay in the upcoming 8 th Pay Commission. They believe that the current family unit count, DA, HRA and TPTA need to be revised by the 8 th Pay Commission, as many low-level employees in Tier I and II cities are struggling to make ends meet.
Manjeet Singh Patel, president, All India NPS Employees’ Federation (AINPSEF), says an entry-level employee gets a basic salary of Rs 18,000, HRA of Rs 5,400 (for X-category cities such as Delhi), and TPTA of Rs 2,800 (including 60% DA hike) at present.
Patel says a Rs 5,400 for HRA and a Rs 2,800 TPTA is not sufficient in a city like Delhi, where expenses can be much more.
“That’s why we want higher HRA and TPTA rates and a family unit count of 4.4 in the 8 th Pay Commission. We have suggested 36% HRA for X cities and a TPTA of minimum Rs 9,000 for Level 1 employees. If that happens, then even at a 2.1 fitment factor, the same employee can get a 65% hike in their salary,” says Patel.
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HRA, TA and DA-related recommendations of key central government employee bodies such as the National Council – Joint Consultative Machinery (NC-JCM), the All India Defence Employees Federation (AIDEF), the Federation of National Postal Organisations (FNPO), the All India NPS Employees’ Federation (AINPSEF), and the Indian Railways Technical Supervisors Association (IRTSA), are as follows-
8th Pay Commission: HRA and TPTA recommendations of leading employee bodies
| Organisation | HRA | TPTA |
| AINPSEF | 36% (X cities), 24% (Y cities) and 12% (Z cities) | Equal to or less than 12% of basic pay but not less than Rs 9,000 |
| NC-JCM Staff Side memorandum | HRA should continue in three slabs: 40% (X), 35% (Y) and 30% (Z) and be linked with DA increases. HRA should also be extended to pensioners. | Increase TA by 3 times of current rates and link it with DA rise. City Compensatory Allowance should be restored. |
| AIDEF | HRA should continue in three slabs: 40% (X), 35% (Y) and 30% (Z) and be linked with DA increases. HRA should also be extended to pensioners. | Increase TA by 3 times of current rates and link it with DA rise. City Compensatory Allowance should be restored. |
| FNPO | 40%, 35%, 30% slabs; should be DA-linked; and should be extended to pensioners | Increase by 3 times; DA linked |
| IRTSA | 40%, 30%, 20% and 10% for different class of cities. Should be linked to DA. HRA rates should be increased by 25% whenever DA reaches 25% | TA should be increased by 3 times of existing rates. 19 specified cities are inadequate, more number of cities should be added. |
8th Pay Commission: DA and family unit recommendations of leading employee bodies
| Organisation | DA | Family units |
| AINPSEF | When DA reaches 25%, it should be merged with basic pay. | Increase family unit to 5 (₹69,000 minimum pay) |
| NC-JCM Staff Side memorandum | HRA to rise automatically with DA. When DA reaches at 25%, it should be merged with basic pay. | Minimum pay proposed with family of 5 units (₹69,000 minimum pay). |
| AIDEF | HRA to rise automatically with DA. When DA reaches at 25%, it should be merged with basic pay. | Minimum pay proposed with family of 5 units (₹69,000 minimum pay). |
| FNPO | 6-month average; point to-point calculation; no rounding loss; merge with pay at 25%. | Minimum pay proposed with family of 5 units (₹69,000 minimum pay). |
| IRTSA | Seeks a new DA calculation formula, arguing CPI-IW 2016 does not represent Central Government employees. Wants a separate consumption basket and city-wise realistic index for DA. | States that 3 consumption units are insufficient. Recommends 4.6–4.8 consumption units (including dependent parents and children). Uses this to arrive at a proposed minimum pay of ₹52,600. |
How higher family units can change salary of Level 1 employees
As per the 7th Central Pay Commission (7th CPC),
Family units = 3.0 (Employee – 1.0, spouse – 0.8, first child – 0.6, second child – 0.6)
Recommended family units by AINPSEF= 4.4 (it also includes 0.7 unit each for parents)
Impact of family units on fitment factor
If the family unit norm is increased from 3.0 to 4.4 in the 8 th Pay Commission, it represents an increase of 46.66% over the existing 3.0 family units. How does that come about?
On January 1, 2026, the fitment factor was 1.58 (100% for basic pay of an employee+58% DA)
If 46.66%, or .47 is factored into 1.58, the fitment factor can be= 1.58+.47= 2.05
It shows that with no additional growth factor, a 4.4 family unit may increase the basic salary of employees by 2.05 times. If the government takes the nearest round figure, the fitment factor can be 2.10 instead of a 2.05.
How higher HRA and TPTA can increase the salary of an employee
Current basic salary of Pay Level 1 (as on December 31, 2025 and as per the 7 th CPC, in a X category city)= Rs 18,000
To calculate the gross salary, we will add 58% DA, 30% HRA, Rs 1,800+58% of Rs 1,800 as TPTA. The gross salary will thus be Rs 37,080.
Basic salary= Rs 18,000
DA 58%= Rs 10,800
HRA 30%= Rs 5,400
TPTA Rs 1,800+58% of TPTA= Rs 1,800+Rs 1,080= Rs 2,880
Gross = Rs 37,080
Proposed basic salary by AINPSEF= Rs 18,000X2.1= Rs 37,800
DA 2% (January 1, 2026 hike)= 2% of 37,800= Rs 756
HRA (36% proposed)= Rs 36% of Rs 37,800= Rs 13,608
TPTAA (proposed)= Rs 9,000+2% of Rs 9,000= Rs 9,180
Gross salary= Rs 61,344 (over all hike 65%) compared to Rs 37,080
Here, you can see that at a 2.1 fitment factor and higher HRA and TPTA, the gross salary hike of a Level 1 employee can be 65%.
