8th Pay Commission: Will salary increase by 66%? Know here

8th Pay Commission Salary: The request to expand the family unit in the Eighth Pay Commission may lead to a 66% rise in the basic salary for central government employees. Employee organizations argue that if family units are considered as five instead of three, there could be significant alterations in the minimum wage, fitment factor, and pension (8th Pay Commission salary and pension increase).

In fact, the Drafting Committee of the National Council (Staff Side) Joint Consultative Machinery (NC-JCM) has organized a week-long meeting in the national capital to create a unified charter of demands for the Eighth Central Pay Commission. This request affects over 5 million central government employees and around 6.9 million pensioners. The primary topic for discussion is the enlargement of the family unit (8th Pay Commission family unit).

How was salary determined in the 7th Pay Commission?

The 7th Pay Commission established the minimum wage using three consumption units, which comprised the employee, their spouse, and two children. This calculation was based on Dr. Wallace Ackroyd’s formula, which included standards such as 2,700 calories per adult, 72 yards of cloth annually, and housing costs. The goal was to assess the income a family requires for a decent living.

Parents should also be part of the family unit!

Dr. Manjeet Singh Patel, National President of the All India NPS Employees Federation, states that many employees also support their dependent parents financially. Hence, the family unit should be expanded from three to five. Since the minimum wage is directly associated with the number of units, raising the base calculation from 3 to 5 units could mathematically increase the base calculation value by 66.67%. Unions assert that this could lead to an approximate 66% increase in the minimum basic salary.

Will the salary matrix move up?

Currently, the minimum basic salary under the 7th Pay Commission is Rs 18,000. If the basic pay increases, the entire salary matrix will shift upward. Unions are also demanding a fitment factor of 3.25 or higher, and an increase in the annual increment rate from 3% to 7%. There are also demands for the full restoration of the Old Pension Scheme (OPS) and the abolition of the NPS and UPS. This demand is also important for pensioners, as the basic pension is 50% of the last basic salary drawn.

If the 5-unit formula is implemented, pensions will increase proportionately. All eyes are now on the government’s decision: whether the Eighth Pay Commission will provide only increments or a significant salary hike through structural changes. Well, this may become clear in the coming days.