New Family Model Proposal
Central government employees, represented by the National Council–Joint Consultative Machinery (NC-JCM), have called for a significant overhaul of the minimum wage calculation framework under the upcoming 8th Pay Commission. The union has proposed a five-unit family model that includes ageing parents, moving away from the existing three-unit structure that only accounts for a working husband, wife, and children. This shift aims to address the financial burden on employees supporting extended families, particularly in the context of rising living costs and inflation. The current system, established under the 7th Pay Commission, assigns 1 unit to the working husband, 0.8 units to the wife, and 0.6 units to each child. The NC-JCM argues that this outdated model fails to reflect the complexities of modern family dynamics, such as the increasing prevalence of dual-income households and the need for elderly care. By incorporating ageing parents into the calculation, the union believes the government can create a more equitable wage structure that aligns with contemporary societal needs.
Merging Pay Scales for Career Progression
Alongside the family model revision, the NC-JCM has emphasized the need to consolidate unviable pay scales to prevent stagnation in career advancement. The union has specifically advocated for merging level 1 with level 2, level 3 with level 4, and level 5 with level 6 to streamline the pay structure. This move is expected to enhance the Modified Assured Career Progression (MACP) scheme by reducing bureaucratic hurdles and ensuring fair increments for employees. The staff representatives argue that the current pay scale divisions create unnecessary delays in promotions and financial planning, which disproportionately affect mid-level and senior officers. Additionally, the NC-JCM has demanded the restoration of commuted pension portions after 12 years and the implementation of the Parliamentary Standing Committee’s recommendation to enhance pensions every five years. These proposals aim to ensure long-term financial security for retired employees while addressing gaps in the existing pension framework.
Fiscal Impact and Timeline for Pay Commission
The 8th Pay Commission’s recommendations are anticipated to have a substantial fiscal impact, with estimates suggesting a cost range of ₹2.4–3.2 lakh crore. This projection, according to Kotak Institutional Equities, underscores the need for careful budgetary planning to accommodate potential salary hikes and structural reforms. The NC-JCM has highlighted that the commission’s Terms of Reference (ToR) are expected to be finalized by the end of August, with the formal submission of recommendations likely to follow within 18 months. However, the union has cautioned that delays in the approval process could further strain the financial sustainability of the government’s wage restructuring efforts. The NC-JCM’s proactive stance reflects its commitment to advocating for fair compensation while balancing fiscal responsibility, ensuring that the reforms align with both employee welfare and public financial health.
Platform for Dialogue and Policy Advocacy
The NC-JCM serves as a critical platform for dialogue between the central government and employee unions, enabling the resolution of staff concerns through structured negotiations. This formal mechanism allows for the addressing of issues such as salary stagnation, pension reforms, and career progression, ensuring that the voices of government employees are heard in policy-making processes. The union’s recent proposals highlight the importance of adapting wage policies to reflect evolving societal and economic conditions. By pushing for a more inclusive family model and streamlined pay scales, the NC-JCM aims to create a sustainable framework that supports both employee welfare and institutional efficiency. As the 8th Pay Commission moves closer to formalization, the union’s demands underscore the ongoing need for equitable and modernized compensation structures in the public sector.
About the Author
