Central government employee unions are demanding changes in the family-unit formula and fitment factor under the 8th Pay Commission, a move that could sharply increase minimum salaries.
8th Pay Commission Update
8th Pay Commission: Central government employees are waiting for the rollout of the 8th Pay Commission. At the same time, employee unions have put forward a major demand that could sharply increase salaries.
They want the government to change the formula used to calculate minimum pay. In particular, they are asking to expand the definition of the “family unit” used in salary calculations. If this proposal is accepted, the base used to fix minimum pay could rise by nearly 66%.
At present, the 7th Pay Commission calculates minimum salary based on a three-unit family. This usually includes the employee, spouse, and children. The formula follows a long-standing cost-of-living method that estimates essential household expenses.
However, employee unions believe this formula no longer reflects real family responsibilities.
They now want the calculation to consider five consumption units instead of three. This would include dependent parents along with the employee, spouse, and children.
If the family size increases from 3 units to 5 units, the base for salary calculation would mathematically rise by 1.66 times. This single change could significantly raise the minimum pay benchmark.
If the government approves this recommendation, the effect on salaries could be substantial.
Entry-level basic salary may increase from Rs 18,000 to around Rs 54,000.
Pension payments would automatically rise because they are linked to the basic pay.
Dearness allowance and other benefits connected to basic salary would also go up.
Since minimum pay forms the foundation of the entire pay matrix, any increase at this level would affect all salary grades. In other words, the impact would spread across the full central government pay structure.
Apart from the family-unit formula, unions are also demanding a higher fitment factor. Currently, the fitment factor stands at 2.57. Employee groups are asking for it to be raised to around 3.25.
The fitment factor decides how current salaries are adjusted into the new pay structure. A higher fitment factor directly results in a larger salary revision. Therefore, this demand could further increase pay levels if approved.
The draft list of demands reportedly includes several additional proposals:
Restoration of the Old Pension Scheme
Around 7% annual salary increments
More promotion opportunities during service
Higher medical and travel allowances
These proposals are being compiled into a detailed memorandum. Unions plan to submit this document once the formal process for the 8th Pay Commission begins.
Pay Commissions play a crucial role in shaping government salaries for many years. Any change in the method used to calculate minimum pay can have a long-term impact.
If the government agrees to increase the assumed household size in the formula, it would significantly raise salary benchmarks. This would benefit employees but also increase the government’s overall wage expenses.
The proposal to expand the family-unit definition is now emerging as one of the central issues ahead of the 8th Pay Commission. Although no final decision has been made, approval of this demand could substantially reset minimum pay levels across the central government workforce.
