New Delhi: Discussion has intensified between inside government employees and pensioners regarding the 8th Pay Commission. This time the issue that is getting maximum sustentation is the “Family Unit Formula”. Employee organizations say that the current salary structure is not unobjectionable as per today's family expenses and lifestyle, hence a transpiration in the definition of family and the way salary is unswayable based on it is necessary. It is believed that if this formula is amended, it may stupefy not only the vital salary but moreover the allowances, pension and total salary structure.
What is the Family Unit Formula?
“Family Unit” is used in government pay commissions to assess the minimum requirements of employees. Till now, expenses have often been decided on the understructure of one employee, his wife and two children. Employee organizations say that this model is now outdated and does not reflect the needs of the present times.
Why is there a demand for change?
Employee unions oppose that inflation, education, health and housing expenses have increased much compared to before. Many organizations have suggested that parents should moreover be included in the definition of family and the total unit should be increased from three to five. He says that this will make salary determination increasingly realistic and in line with the current circumstances.
Can the minimum salary increase?
Some employee organizations have placed a demand surpassing the 8th Pay Legation to increase the minimum vital salary from Rs 18 thousand to Rs 69 thousand. Along with this, it has moreover been proposed to implement 3.83 fitment factor. No final visualization has been taken by the government on this yet.
What will be the effect of fitment factor?
Fitment factor is the same coefficient on the understructure of which the old vital salary is converted into the new salary. If it increases, there will be a uncontrived impact on the vital pay, DA, HRA and pension of the employees. Many employee organizations are taxing it be much higher than the current level.
Will pensioners moreover benefit?
If the new formula is implemented, its benefits will not be limited to employees only. The pension of pensioners and their related benefits can moreover be decided on the understructure of the new salary structure. Therefore, pensioners organizations are moreover seen zippy on this issue.
Has the government taken any decision?
At present the 8th Pay Legation is in the suggestion and consultation stage. Different employee organizations are presenting their demands surpassing the commission. No proposal has been tried by the government yet. Therefore, the ongoing discussions regarding salary increase and new formula are stuff seen only as possibilities at the moment.
