What Will Be the Minimum Salary Under 8th Pay Commission? Staff Side Proposal Explained

The 8th Central Pay Commission has once again brought government salaries into sharp focus, with the minimum salary and fitment factor emerging as the most debated issues among central government employees and staff unions.

At the heart of the discussion is how the minimum wage should be calculated—whether it should continue to follow decades-old benchmarks or be updated to reflect today’s economic realities and lifestyle needs.

What the 8th Pay Commission’s Terms of Reference Say

Review of Pay, Allowances and Benefits

Under its Terms of Reference (TOR), the 8th Pay Commission has been tasked with reviewing and recommending changes in:

• Pay structure

• Allowances

• Other service-related benefits

These recommendations must be desirable and feasible, while ensuring rationalisation, addressing contemporary work requirements, and meeting the specialised needs of different government departments.

Focus on Talent and Efficiency

The TOR also direct the Commission to design a pay structure that:

• Attracts skilled talent to government service

• Improves efficiency and accountability

• Encourages responsibility and performance at work

The Missing Link: No Fixed Formula for Minimum Pay

Why This Has Sparked Debate

One key aspect the TOR does not clearly define is the method or formula for fixing the minimum salary. This omission has opened the door for staff unions to push for a revised and more realistic approach to minimum wage determination under the 8th Pay Commission.

What Does the Staff Side Want?

NC-JCM Staff Side’s Proposal Explained

In a recent meeting, the NC-JCM Staff Side decided to submit a detailed proposal to the 8th Pay Commission on how minimum wages should be calculated.

The Staff Side argues that minimum pay should go beyond just food and traditional necessities and reflect the realities of modern living.

Factors Proposed for Minimum Wage Calculation

According to the proposal, the following elements should be included:

• Calorie requirements for an adult

• Number of family members

• Food, clothing, and other non-food necessities

• Actual retail prices from government ration shops and cooperative consumer stores

• Additional provisions for festivals and social obligations

Technology as a Basic Necessity

Most importantly, the Staff Side has stressed the inclusion of digital and technological expenses, such as:

• Mobile phones

• Internet connectivity

• Other everyday technology-related costs

The argument is clear: in today’s world, technology is no longer a luxury but a basic necessity, and therefore must be factored into the minimum wage formula.

How Is This Different from the 7th Pay Commission?

Minimum Wage Formula Used by the 7th Pay Commission

While the TOR of the 7th Central Pay Commission were broadly similar, its approach to minimum wage calculation was based on the standards set by the 15th Indian Labour Conference (ILC) of 1957.

These standards defined a need-based minimum wage for a family comprising:

• An employee

• Their spouse

• Two children below the age of 14

The 7th Pay Commission considered this framework sufficient to ensure a healthy and dignified standard of living.

The Gap Highlighted by the Staff Side

However, this method did not separately account for modern essentials, such as:

• Mobile phones

• Wi-Fi and internet access

• Technology-driven daily expenses

This gap is now at the centre of the Staff Side’s demand for change under the 8th Pay Commission.

Latest Status of the 8th Pay Commission

Discussions and Internal Preparations Underway

The process for the 8th Pay Commission has already moved forward, with early discussions on its scope and priorities now underway.

Although the final recommendations may take time, employee organisations are actively engaging with the Commission on:

• Minimum wage

• Pay matrix

• Fitment factor

Meanwhile, internal preparations have reportedly begun within government departments to assess the financial impact of the upcoming pay revision, indicating strong expectations of a salary hike.

Fitment Factor: A Key Area of Expectation

How the Fitment Factor Has Changed Over Time

Employee organisations are closely tracking the fitment factor, which plays a critical role in determining salary increases:

• 6th Central Pay Commission: Fitment factor of approximately 1.86

• 7th Pay Commission: Fitment factor of 2.57, resulting in a minimum basic pay of Rs 18,000

What Employees Expect from the 8th Pay Commission

For the 8th Pay Commission, employees and unions are demanding a higher fitment factor, citing:

• Rising inflation

• Higher household expenses

• Education costs for children

• Healthcare expenses

• Increased spending due to a technology-driven lifestyle

At the same time, it is widely believed that the final decision will involve balancing employee needs with the government’s financial position.

Why the 8th Pay Commission Debate Matters

The discussion surrounding the 8th Pay Commission is about more than just a pay hike. It reflects a larger debate on whether minimum wages should be:

• Based on outdated benchmarks, or

• Calculated using today’s real-world expenses and lifestyle requirements

If the Commission accepts the Staff Side’s revised formula along with a stronger fitment factor, the 8th Pay Commission could prove significantly more impactful for central government employees than previous pay panels.