8th Pay Commission 5 Family Unit Formula: After the recent meeting of the Eighth Pay Commission in Delhi, now the central employees and pensioners are eyeing the meeting to be held in Jaipur. After this, meetings are to be held in Chandigarh, Chennai, Puducherry and other cities also. Till now, all the employee-pensioners organizations that have met the members of the Commission have put forth their demands on salary, pension, allowances, health scheme and other facilities, but many organizations have also demanded changes in another important formula. That formula is not of fitment factor or increase in dearness allowance (DA Hike), but of the family unit.
Yes, the formula of family unit. National President of All India NPS Employees Federation (AINPSEF) Dr. Manjit Singh Patel had also raised the issue with the Commission. He said that the change in the formula of family unit can lead to a significant increase in salary and pension.
Demand to increase family unit formula from 3 to 5
Dr. Patel said that till now the fitment factor has been decided by considering the number of family units as 3. This includes the employee, his spouse and two children. Now there is a demand to include parents also in this.
3 Family Unit Formula
- Employee- 1 Unit
- Spouse – 1 unit (husband or wife)
- First child – 0.5 i.e. half unit
- Second child – 0.5 i.e. half unit
Total Units- 3
5 Family Unit Formula
- Employee- 1 Unit
- Spouse – 1 unit (husband or wife)
- First child – 0.8 units
- Second child – 0.8 units
- Employee’s parents – (0.8 + 0.8) units
Total Units – 5.2 (rounded off – 5)
According to Dr. Patel, it is an important demand in the direction of social security that the number of ‘family units’ should be increased from 3 to 5. He said, ‘The special thing is that now there has been a demand to make the parents also a part of the family unit, because the responsibility of the parents also lies on the employee. For the first time in the history of the Pay Commission, a demand has been made to eliminate the disparity in unit value between men and women and to give equal 1-1 unit to both.
How much can the salary increase, understand the calculation
Dr Patel explained that as per ILO criteria, per unit living cost is calculated in determining the salary. For example, today the minimum living cost of a person after adding the expenses of food, clothes, house, education and treatment comes to Rs 13,000.
- Now the estimated minimum basic salary will be made on the basis of the old 3 family unit formula-
- 3×13,000= ₹ 39,000
- If the new 5 family unit formula is approved then the estimated minimum basic salary will be-
- 5×13,000= ₹ 65,000
- That means the basic salary of the employees will increase by Rs 26,000. If we look at it in percentage, it is an increase of 66%.
Dearness allowance, house rent allowance and other allowances received on the basis of basic salary will be added separately. In this way, there will be a significant increase in the salary of the employees. And then after retirement, you will also get increased pension on this basis.
Source: ndtv.in
