If the family unit is increased from the current three to five and a fitment factor of 2.66 is assumed for the calculation, the minimum basic salary could increase from Rs 18,000 to about Rs 48,000. This is not a decision though. The calculations are based on the demands and estimates of employee organisations. It can be recalled that the uniform fitment factor applied by the 7th Central Pay Commission was 2.57, which served as the standard mathematical multiplier applied to the existing basic pay.

Demand to increase the family unit

The current system uses three units as the basis for calculating family size. Employee organizations argue that parents are also part of an employee’s family and financial responsibilities. Therefore, the family unit should be increased to five. Several organisations, including the National Council of Joint Consultative Machinery (NC-JCM), AINPSEF, AIDEF, and FNPO, have raised this demand.

In a memorandum submitted to the 8th Pay Commission, the NC-JCM has demanded an increase in the minimum basic pay from Rs 18,000 to Rs 69,000. Meanwhile, the IRTSA has suggested a consumption unit of 4.6 to 4.8, and based on this, has proposed a minimum salary of about Rs 52,600.

Salary hike with 2.66 fitment factor

According to AINPSEF president Manjeet Singh Patel, if the family unit is increased from 3 to 5, the fitment factor could reach approximately 2.66. For example, the minimum basic pay for a Level 1 employee under the 7th Pay Commission is Rs 18,000. If a fitment factor of 2.66 is applied under the 8th Pay Commission, the calculation would be Rs 18,000 × 2.66 = Rs 47,880, or about Rs 48,000.

Impact on employees from Level-1 to Level-5

The impact of this fitment factor will not be limited to Level 1 employees. Basic salary increases for Level 2, Level 3, Level 4, and Level 5 employees can also be calculated based on this. However, the final salary increase will depend on the recommendations of the 8th Pay Commission and the final decision of the Central Government. The Commission’s process is currently underway, and various employee organizations are presenting their demands to the government.

Just an estimate

It s important to understand that Rs 48,000 is not a declared minimum wage. It’s an estimate based on a 2.66 fitment factor and a possible arrangement for five family units. On the other hand, several employee organisations are demanding a direct increase in the minimum basic pay to Rs 69,000.

Therefore, until the final recommendations of the 8th Pay Commission are issued, employees should view these figures as mere tentative estimates. Decisions regarding final pay, fitment factor, and family unit will only be clear after the Commission’s recommendations and government approval.