8th Pay Commission Updates: The current formula is based on only three units (self, spouse, and two children). Employee unions are demanding that this be increased to five units. This will also result in salary increases.

Salary calculation should be based on 5 family units instead of 3

8th Pay Commission: Employee unions have made several demands regarding the 8th Pay Commission. One of these is to increase the number of family units from three to five. This is to expand the base for salary calculations. This will also increase the minimum basic salary and allowances.

In fact, salary calculations for millions of central government employees are still based on a formula designed with the typical Indian family in mind. Now, employee unions are demanding that the 8th Pay Commission rewrite this formula. They argue that modern families can no longer survive based on assumptions made years ago.

Need to change the formula

Since independence, India has used a formula to determine the minimum wage. It assumed that an employee's family consisted of three units: the employee, their spouse, and two children. The government determined the minimum wage based on the living expenses of these three individuals. Now, employees argue that since they are also responsible for their elderly parents, the formula should be revised to five units: employee + spouse = one 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 done as per 5 people.  

How much will it affect your pocket?

If the government accepts the formula of 5 units instead of 3, then it can lead to a huge increase in salaries.

Minimum Salary – This can 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 the employee has to bear the expenses of 5 people instead of 3, hence he should get more money.