As the 8th Pay Commission is working to prepare its report of recommendations, a common demand that almost all major employee and pensioner bodies have prominently raised is to increase the number of family units. They claim that merely increasing the family units from the current range of 3 to 5 can significantly boost revised salaries in the 8th Pay Commission.National Council of the Joint Consultative Machinery, NC (JCM), central government employees' main body, in its memorandum submitted to the 8th Pay Commission, has demanded the minimum basic salary to rise from Rs 18,000 to Rs 69,000, and increasing the family unit to five has a key role in it. The All India Defence Employees' (AIDEF), the All India New Pension Scheme Employees' Federation (AINPSEF) and the Federation of National Postal Organisations (FNPO) too have demanded increasing the family units to five. Organisation Family units AINPSEF Increase family unit to 5 (₹69,000 minimum pay) NC-JCM Staff Side memorandum Minimum pay proposed with family of 5 units (₹69,000 minimum pay). AIDEF Minimum pay proposed with family of 5 units (₹69,000 minimum pay). FNPO Minimum pay proposed with 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 5 family units may impact the fitment factor in the 8th Pay CommissionManjeet 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, 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 for most employees.Patel presents a calculation of how the fitment factor may reach 2.66 if the 8th Pay Commission considers five family units instead of three for its report of recommendations. Taking the example of a Level 1 employee in the 7th Pay Commission, Patel gives this calculation-Basic Pay of Level 1 employee as per 7th Pay Commission = Rs 18,000DA = 58% (since the government is yet to announce a 2% June hike)= 58% of Rs 18,000= Rs 10,440Total (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 18,000Therefore, expected fitment factor = 1.58+1.08 (for 108% raise)= 2.66It means if the 8th Pay Commission decides on five family units 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.ET Online