Mumbai: The 8th Pay Commission, constituted for central government employees, has shifted into “action mode.” The Pay Commission is currently holding a series of intensive meetings. In this context, a meeting was recently held in Pune between the Pay Commission and members of the Maharashtra Old Pension Organization. Several demands were put forward during this meeting. Let us delve into the details to understand exactly what demands were made.
What Are the Demands?
Under the ambit of the 8th Pay Commission, the Maharashtra Old Pension Organization has demanded a minimum basic salary of ₹65,000 and a fitment factor of 3.8 for all central government employees. They also presented several other demands, including a guaranteed minimum increase of 4% in the Dearness Allowance (DA), as well as an upward revision of the limits for House Rent Allowance (HRA) and Travel Allowance (TA). Furthermore, their demands include extending the benefits of the Pay Commission to employees eligible for promotions and to those covered under the Unified Pension Scheme (UPS).
Is There Demand for a Change in the Definition of a ‘Family Unit’?
Since the size of a “family unit” plays a crucial role in determining the minimum wage and fitment factor for employees, the Maharashtra pension body has demanded that the 8th Pay Commission’s report incorporate parents into the definition of a family unit. Consequently, they have requested that the maximum size of a family unit be expanded from the current limit of 3 members to 5 members.
What is the Demand for a Minimum Wage?
A demand has been raised to increase the current entry-level basic salary from ₹18,000 to ₹65,000. The Old Pension Organization asserts that it has formulated this recommendation for the minimum wage based on the “Aykroyd Formula” and the composition of a realistic family unit. The Maharashtra pension body has also demanded an enhancement of the fitment factor; specifically, they are seeking to raise it from the current 2.57 (established under the 7th Pay Commission) to 3.8. Additionally, they have demanded a minimum increase of 4% in the DA during every revision cycle, along with a provision for the automatic merger of the DA with the basic salary once it reaches the 50% mark. -The Maharashtra Pension Institution has demanded the abolition of the system linking HRA to DA, as well as an increase in the existing HRA rates for X, Y, and Z category cities—currently at 10%, 20%, and 30%—to 12%, 24%, and 36%, respectively. Furthermore, a demand has been raised for an increase in the Travel Allowance (TA).
-A demand has been made to increase the annual increment from 3% to 5%. Additionally, the Maharashtra Pension Institution has called for the implementation of the Old Pension Scheme (OPS) for approximately 8.5 million employees across the country currently covered under the National Pension System (NPS). Regarding the NPS, the institution asserts that the government should provide a guaranteed return of at least 10% and increase the employer’s contribution to 18.5%.
