Summary of this article
Minimum basic pay proposed at Rs 69,000
Minimum pension proposed at Rs 34,470
Recommendations await 8th Pay Commission review
The 8th Central Pay Commission (CPC) is in the final stages of formulation. The pay commission set up by the government is to review and revise the pay structures of government employees and invites associations, unions and other stakeholders to present their views, opinions and suggestions regarding the upcoming pay structure. The process is unfolding steadily as the outcome of the 8th CPC is wide-ranging and sensitive, while it also depends on various internal and external matters of the committee. However, what can be said at present is that government employees, pensioners, and PSU employees are eagerly waiting for any confirmation on the fitment factor.
In recent events that unfolded regarding the 8th pay, proposal submissions by the Karnataka Posts and Telecommunications Pensioners’ Associations include an increase in minimum basic pay to Rs 69,000 as a minimum pension, with a minimum pension of Rs 34,470 and changes to the existing pay structures. These are recommendations made by the association and have not yet been approved by the government.
New Minimum Basic Pay Proposed
The Karnataka Pensioners’ body has recommended a fitment factor of 3.833, in line with the proposal put forward by the National Council-Joint Consultative Machinery (NC-JCM) Staff Side. Under the 7th Pay Commission, the minimum basic pay for central government employees is Rs 18,000; the argument stands with the fact that this amount is no longer enough to stay inflation-proof. Applying the proposed fitment factor of 3.833 would increase this amount to nearly RS 69,000 under the 8th Pay Commission.
The fitment factor is a multiplier used to calculate the revised basic pay and pensions. The final factor, however, depends on the 8th Pay Commission’s recommendations and the government’s decision.
Minimum Pension of Rs 34,470 Recommended
The association has also proposed increasing the minimum pension from Rs 9,000 to nearly Rs 34,470. The recommendation is based on the same fitment factor of 3.833 proposed for employees’ salaries. If it is accepted, the revision could significantly increase the minimum pension. However, pensioners should note that the proposed amount is not confirmed, nor is the proposal accepted.
Aykroyd Formula Revision
The pensioners’ body has also asked for an update to use the Aykroyd formula, which is used to assess the minimum wage requirements. As per this, the formula should reflect changes in household expenses, with inflation factored in, as well as the digital services people are reliant on. The association has also recommended increasing the annual increment rate from 3 per cent to 6 per cent. The reasoning behind this is that a higher increment could encourage better performance, development and motivation of employees.
Revised Family Unit Calculation
The association has also made a proposal to replace the existing three-unit family calculation with a five-unit framework. The suggestion is that each unit should consider the employee, spouse and two children, and 0.8 units for the employee’s parents. This totals 5.6 units.
The recommendations are yet to be examined by the 8th Pay Commission before any changes are finalised. Until the commission submits the recommendations and the government announces its decisions, the proposals should be seen as demands only, not confirmations.
