8th Pay Commission: Big demand of employee unions, change in pay fixation formula? Bigger pay rise?

• The size of ‘family unit’ should be increased from 3 to 5 members
• Millions of central government employees are still on the same formula
• Need to revise the formula

8th Pay Commission: The employee unions have raised several demands regarding the 8th Pay Commission. One of these demands is to increase the size of the ‘family unit’ from 3 to 5 members. The purpose behind this is to widen the basis of salary calculation. Consequently, this is expected to increase both the minimum basic pay and various allowances. So what exactly will the difference be”text-align: justify;”> 6 lakh crore rupees in the water, the level of sales in the share market does not stop, the atmosphere of fear among investors

Millions of central government employees are still on the same formula

In fact, lakhs of central government employees are still experiencing salary calculation based on such a formula, which was originally designed keeping in mind the situation when Indian family size was very small. Now, the employee unions are demanding that the 8th Pay Commission should revise the formula. They argue that, based on assumptions made decades ago, today’s families can no longer make ends meet.

Need to revise the formula

Since independence, a specific formula has been used to determine the minimum wage in India. This formula is based on the assumption that an employee’s family consists of three components: the employee himself, his spouse and two children. Historically, the government has fixed the minimum wage taking into account the cost of subsistence and living conditions of these three individuals. But employees now say that they are also responsible for caring for elderly parents these days; Consequently, this formula needs to be revised and expanded to include five elements.
Which will be structured as follows: Employee + Spouse = 1 component.
Parent = 2 elements (1 + 1)
Total = 5

Their main contention is that since they have to bear the expenses of five persons, the wages should likewise be calculated on the basis of five persons.

How will it affect your pocket?

If the government adopts a formula based on 5 units instead of the current 3 units, the salary may increase significantly. The minimum salary may increase from the current ₹18,000 to approximately ₹50,000 to ₹70,000. Pension and Allowances Of course, if the basic salary is increased, dearness allowance, house rent allowance and pensionary benefits are also likely to increase proportionately. Simply put, the increase in the number of units means that the government will now accept that an employee bears the cost of 5 persons instead of just 3 and as a result, he should be paid more. Therefore, if these demands of the employees are accepted, there will be a big increase in salary.

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