8th Pay Commission Minimum Wage: Discussions have intensified among central employees regarding the 8th Pay Commission. There is a lot of excitement among the employees due to the news of increase in Dearness Allowance (DA). Meanwhile, unions and employee organizations have demanded that the old formula for determining the minimum wage be changed. He says that along with inflation, fitment factor and DA, minimum wage also plays a major role in the salary structure.

What is the formula of ‘minimum wage’?
The formula of ‘minimum wage’ is called ‘family unit’. Actually, family unit is called that model family on the basis of which the government decides what minimum income an employee needs to run the family. This usually includes the employee, his wife and children. On the basis of this estimate, minimum wage, fitment factor and other allowances are calculated.

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This formula is decades old
Unions and organizations say that this formula was prepared decades ago, when the expenses of families were limited. But now the expenses on rent, children’s education, expenses of private hospitals, transportation and daily needs have increased significantly. In such a situation, the current salary structure is not able to meet the real needs of modern families.

Many employee organizations including All India NPS Employees Federation have given a memorandum to the 8th Pay Commission demanding a new definition of family unit. He says that merely increasing the Dearness Allowance (DA) is not providing relief to the employees. If the government accepts these demands of the organizations and changes the standards of the family unit, then it will have a direct impact on the minimum basic salary, fitment factor, allowances and pension. Lakhs of central employees can get huge benefits from this. However, this is also likely to lead to a huge increase in the salary and pension expenses of the government.

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