8th Pay Commission salary hike: How minimum salary may rise to Rs 48,000 at 5 family units; see revised estimates of Level 1-5 employees’ pays

With the 8th Pay Commission busy putting together its recommendations, a key request form nearly all major employee and pensioner groups is to increase the number of family units. They argue that simply increasing the family units from the current range of 3 to 5 can significantly boost revised salaries in the 8th Pay Commission.

The National Council of the Joint Consultative Machinery, NC (JCM), which is the main representative of the central government employees, has put forth a memorandum to the 8th Pay Commission, asking for the minimum basic salary to jump from Rs 18,000 to Rs 69,000, emphasising that increasing the family unit to five is crucial for this change.


The All India Defence Employees' (AIDEF), the All India New Pension Scheme Employees' Federation (AINPSEF) and the Federation of National Postal Organisations (FNPO) have also called for the family units to be raised to five.

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Organisation	Family units
AINPSEF	Increase family unit to 5 (₹69,000 minimum pay)
NC-JCM Staff Side memorandum	Minimum pay proposed with a family of 5 units (₹69,000 minimum pay).
AIDEF	Minimum pay proposed with a family of 5 units (₹69,000 minimum pay).
FNPO	Minimum pay proposed with a family of 5 units (₹69,000 minimum pay).
IRTSA	Recommends 4.6–4.8 consumption units (including dependent parents and children). Uses this to arrive at a proposed minimum pay of ₹52,600.

How family of 5 units may impact the fitment factor in the 8th Pay Commission

Manjeet Singh Patel, president, the AlNPSEF, told ET Wealth Online that “parents of an employee were not counted as family units in the 7th Pay Commission, and so the total units were determined as three, but we want the government to include parents as family units as well since taking care of parents is also the responsibility of most employees.”

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Patel has presented a calculation of how the fitment factor may reach 2.66 if the 8th Pay Commission considers five family units instead of three in its recommendations. Taking the example of a Level 1 employee in the 7th Pay Commission, Patel puts forth this calculation:

Basic Pay of Level 1 employee as per 7th Pay Commission = Rs 18,000

DA = 58% (since the government is yet to announce a 2% June hike)= 58% of Rs 18,000= Rs 10,440

Total (basic pay+DA) = Rs 28,440 (Rs 18,000+ Rs 10,440)

Current fitment factor= 1.58 (1 for basic pay and 0.58 for DA)

For a family unit of 5:

Expected minimum basic pay in 8th CPC= (Rs 28,440 × 5) ÷ 3

= Rs 47,400 = Rs 48,000 (round figure)

Benefit = Rs 48,000 – Rs 28,440 = Rs 19,560

= 108% increase from the 7th CPC basic pay of Rs 18,000

Therefore, expected fitment factor = 1.58+1.08 (for 108% raise)= 2.66

It means if the 8th Pay Commission decides to raise family units to 5 and a 2.66 fitment factor, the Rs 18,000 minimum basic pay may rise to Rs 48,000.

Now, let’s see how the salaries of Level 1-5 employees may be impacted at a 2.66 fitment factor.