Summary of this article
Rs 72,000 minimum pay demand proposed
Fitment factor revision sought to 4.0
Family unit change may raise salary base
As the 8th Central Pay Commission (CPC) is in the very important stages of being formulated, the Centre has opened a window of consultation. This invites employees, pensioners, unions, and other stakeholders to formally share their views and demands regarding the 8th CPC. However, the debate around it has gotten even more intense after the Bharatiya Pratiraksha Mazdoor Sangh (BPMS) submitted its memorandum that proposed major changes to the salary structure of the central government employees.
The most significant demand is to increase the basic pay to Rs 72,000 per month, which is 4 times the current Rs 18,000 salary as fixed under the 7th CPC. As per a report by Livemint, this figure will balance economic realities and the living requirements of the concerned employees. If these changes are accepted, it will ensure a stable standard of living for entry-level employees as per BPMS.
Another demand by the union was to increase the fitment factor to 4.0 from the present 2.57. The fitment factor is essentially a multiplier used to calculate the basic pay under which the new pay commissions are revised. It determines how much an employee’s basic salary increases by. If the 4.0 increase is accepted as the fitment factor for the 8th CPC, the salaries are bound to increase substantially. The objective of incorporating this multiplier is to account for the long-term external shortcomings, such as inflation. Additionally, the union has asked for a rationalisation of dearness allowance (DA), which is revised to make incomes inflation-proof.
The union has also called for a revision of the definition of family unit when it comes to salary calculations. Until now, the pay calculations have been based on the basic assumption that households comprise three members. However, employees argue that this assumption is outdated and does not serve the modern-day household realities. Many employees support not just their counterparts and children but also their dependent parents, which makes it a five-member unit. By proposing this change to the family size, the financial base pay is also expected to rise, which captures a more realistic living expense.
These recommendations come at a time when the 8th CPC is promptly looking for stakeholders before it comes to a formal decision, as this would affect the lives of all current government employees as well as the pensioners. It is bound to reshape the salary structure for millions of government employees and pensioners. While the exact magnitude of the hike remains unknown, even the conservative estimates indicate a substantial growth for many across all pay levels.
