8th central pay commission: Why are staff representatives demanding expansion of family units from 3 to 5, explained

The National Council-Joint Consultative Machinery (NC-JCM) led by Secretary Shiv Gopal Mishra, met with the 8th central pay commission (CPC) chaired by former Supreme Court Justice Ranjana Prakash Desai, and submitted a 51-page memorandum of their proposals.

A major demand among this, is for overall salary hike with basic pay increased to ₹69,000, by recalibrating minimum pay based on “scientific living wage formula”. According to the submitted memorandum, this will take into account “food, housing, education, health care, transport and the technological / digital needs”.

As part of this, the body has also asked that family units for calculation be expanded from 3 to 5. Here's what this means:

What is family units in salary calculation?

According to the NC-JCM's memo, at present, the minimum pay calculations treat a family as 3 units — employee, spouse and two children.

However, the demand is for expansion of the scope to reflect current realities, and have a family as 5 units — employee, spouse (no gender discrimination), each child as 0.8 units, and dependent's parents as 0.8 units. “This works out to a total of 5.2 units (rounded off to 5 units),” it said.

The suggestions from the NC-JCM's staff side came as part of the 8th CPC seeking inputs from stakeholders on “Pay Matters”, covering annual increment, basic pay, maximum pay minimum pay, pay levels, pay matrix, and pay structure.

It added that responsibilities are backed by legal provisions like the Maintenance and Welfare of Parents and Senior Citizens Act and Social Security Code 2020, as per reports.

How could this recalibration impact salaries?

• If revised calculations and salary structures are implemented, the minimum pay could increase in-hand pay from ₹18,000 to between ₹50,000-70,000.
• Updates to the basic pay will also have proportional impact on related components such as dearness allowance (DA), house rent allowance (HRA) and pension payout.

How much increase in pay have stakeholders demanded?

10 key demands made by NC-JCM staff

• Salary and promotions: Five time-bound promotions in 30 years with ACP/MACP progression.
• Pay Fixation: Two additional increments and improved fixation benefits on promotion.
• Allowances: Threefold hike in HRA, CEA, and risk allowance linked with DA revision. Special focus on HRA, CER and risk allowance.
• Advances: Restore festival and calamity advances, introduce vehicle advance, waive recovery on death of a serving employee.
• Leave Reforms: 600 days earned leave encashment requested, childcare leave, paternity, menstrual, medical and disability care leaves.

• Insurance Enhanced: CGEGIS coverage and revised subscription rates.
• Compensation: ₹2 crore ex-gratia for accidental death in service.
• Compassionate Appointment: 100% coverage with the removal of 5% ceiling was requested.
• Bonus Structure: Removal of ceiling; calculation on Basic Pay + DA
• Pension and Service Benefits: Withdrawal of NPS/UPS, restoration of the old pension scheme, pension revision, OROP for civilians, gratuity and family pension upgrades, and five-year periodic enhancement.

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