8th Pay Commission: 18 thousand salary will be 54 thousand? Lottery will be held for central employees with the new formula of ‘Family Unit’!

New Delhi: A big and shocking discussion has started regarding the 8th Pay Commission for about 1.2 crore central government employees and pensioners. Although there is still time for the commission’s report to be ready, employee organizations have raised a demand which, if accepted, could see the biggest jump in the salaries of government employees so far. This entire game is revolving around the ‘Family Unit’ formula, which can completely change the foundation of the current pay structure. What is the ‘Family Unit’ formula and why is there such a ruckus? Actually, a ‘Family Unit’ is considered the basis for deciding the minimum salary of central employees. Currently, under the 7th Pay Commission, a unit consists of 3 members (employee, spouse and a child). But employee organizations argue that this calculation is completely impractical in today’s times. The organizations demand that a family unit should have at least 5 members (employee, spouse, two children and elderly parents). In view of the rising inflation of urban life and the huge expenditure on education and health, the base of 3 members has now become outdated. If there is increase from 3 to 5 units, the entire calculation of salary will change. If the government accepts this demand, then it will not only be a change in the number of members, but it will directly impact your bank account. From a mathematical point of view, going from 3 to 5 members means a direct increase of 66% in the needs of the family. At present the expenditure of each family unit is considered to be about 33% of the total salary. In such a situation, the following equation can be used to calculate the salary:$$\text{New Salary} = \text{Existing Base} \times \left( 1 + \frac{66}{100} \right)$$Fitment Factor and ‘Tsunami’ in Minimum Pay In the 7th Pay Commission, the fitment factor was kept at $2.57$. In the initial discussions for the 8th Pay Commission, it was being considered at $1.76$. But if the ‘5 family units’ formula is implemented, the fitment factor may cross $3.0. Minimum Salary: Currently the minimum basic salary is ₹18,000. After the 5 unit formula, it can increase to more than ₹ 54,000. Impact on salary slab: If the basic salary of an employee is currently ₹ 78,800, then it can reach ₹ 2,43,492 with the new formula and gross fitment factor of $ 3.09. Will have to wait till 2027, although all this is still at the level of proposals and demands. Experts believe that the 8th Pay Commission may submit its report by mid-2027, only after which the government will take the final decision on its implementation. The biggest challenge for the government will be fiscal deficit, because such a huge salary increase will put a huge burden on the treasury. Still, 1.2 crore people are hopeful that this time they will get results as per their responsibility.