8th Pay Commission: Employee unions have put forward many demands regarding the 8th Pay Commission. One of these is to increase the family unit from 3 to 5. This is so that the base of salary calculation can be increased. This will also increase the minimum basic salary and allowances.

In fact, the salary calculation for millions of central government employees is still based on a formula which was designed keeping in mind the very small Indian family. Now, employee unions are demanding the 8th Pay Commission to rewrite this formula. He argues that today’s modern families can no longer survive based on the beliefs held years ago.

Need to change the formula

Since the time of independence, a formula was used to determine the minimum wage in India. In this it was believed that there were three units in an employee’s family. Employee himself, spouse and 2 children. The government used to fix the minimum salary according to the living standards of these three people. Now the employees say that in today’s time they are also responsible for the elderly parents, hence the formula should be changed and it should be made 5 units – employee + spouse = 1 unit.

Parents = 2 units (1+1)

Total- 5

His argument is that when the expenses of 5 people have to be borne, then the salary calculation should also be according to 5 people.

How much will it affect the pocket?

If the government accepts the formula of 5 units instead of 3, then there can be a bumper jump in the salary.

Minimum salary- It may increase from the current Rs 18,000 to around Rs 50,000 to Rs 70,000.

Pension and allowances- It is obvious that if the basic salary increases, then DA, HRA and pension will also increase in the same proportion.

In simple words, increasing the unit means that the government will now accept that now the employee has to bear the expenses of 5 people instead of 3 people, hence he should get more money.

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