The proposal to increase the family unit in the 8th Pay Commission is emerging as a major demand of the central government employee unions. If it is approved, then the calculation of basic salary can technically increase by about 66%. This will have a big impact on minimum wage, fitment factor and pension. The National Council of the Joint Consultative Mechanism (NC-JCM) is currently preparing the draft for the 8th Pay Commission. This one change can change the way of determining the salary of about 1.2 crore employees and pensioners.

Why is the demand for 66% increase in discussion?

NC-JCM has called a week-long meeting in New Delhi from 25 February 2026, in which the master memorandum for the 8th Pay Commission is being prepared. Employee organizations had already given their recommendations to the government, but many organizations were not satisfied with the terms (ToR) issued in November 2025. Now the proposal that is being discussed the most is the suggestion of increasing the family unit.

What is the family unit formula?

In the 7th Pay Commission, the minimum salary was calculated on the basis of 3 units. Employee, spouse and two children. This calculation was based on Dr. Wallace Aykroyd's formula, which included the basic needs of the family.

• 2700 calorie diet daily
• annual clothing needs
• living expenses
• Its purpose was to determine the minimum income necessary for a respectable life.
• What is being demanded now?
• The employee unions want the family unit to be increased from 3 to 5, in which dependent parents should also be included.

in simple words

• First calculation = 3 units
• New offer = 5 units

according to mathematics

• 5 ÷ 3 = 1.66
• That means approximately 66.67% increase in basic calculations.
• impact on minimum wage
• Currently, the minimum basic salary under the 7th Pay Commission is ₹ 18,000. Employee organizations are demanding.
• Fitment factor up to 3.25 (earlier 2.57)
• 7% salary increase every year
• Restoration of Old Pension Scheme (OPS)
• If the base salary increases, the entire salary structure will go up.

Why might the fitment factor increase?

Fitment factor is the same coefficient by which the old salary is converted into the new salary. As the family unit increases, the calculation of minimum wage will become larger, which strengthens the demand for higher fitment factor.

What is the impact on pensioners?

Pension is 50% of the last basic salary. Therefore, if the new basic salary increases, the pension will also increase in the same proportion. This is the reason why pensioners organizations are also keeping an eye on it.

Why are employee organizations saying changes are necessary?

• The unions say:
• inflation has increased rapidly
• Many employees take on parental responsibilities
• The 3 unit model does not reflect the reality of today's family.
• He believes that not just a small increase, but a major change in the salary structure is necessary.

What is the situation now?

NC-JCM will combine the demands of different departments and give the final proposal to the government. This will include suggestions related to family unit expansion, minimum wage, pension equality and allowances. It is not yet clear whether the government accepts the 5-unit proposal or not. But if approval is given, then a big change can be seen in salary, pension and allowances.

The most important thing for employees

The figure of 66% increase is not an estimate, but the mathematics related to the change in the salary calculation formula. If the family unit increases from 3 to 5, then the base salary will increase by approximately 66.67%. The basis for increasing the fitment factor will be strong. Minimum salary up to ₹54,000 can be demanded.

Pension will also increase in the same proportion

Now the biggest question is whether the government will approve changing the family unit formula?