The 8th Central Pay Commission has put the spotlight back on government pay, with minimum salary and the fitment factor emerging as the most debated issues among employees and unions.
Under its Terms of Reference (TOR), the commission is asked to review and recommend changes in pay, allowances and other benefits that are desirable and feasible, keeping in mind rationalisation, contemporary work requirements and the specialised needs of different departments.
The TOR also ask the Commission to design a pay structure that can attract talent to government service and improve efficiency, accountability and responsibility at work.
What the TOR does not spell out is the method or formula for fixing the minimum pay. This gap has opened the door for staff unions to push for a fresh approach.
What does the Staff Side want?
In a recent meeting, the NC-JCM Staff Side decided to present a detailed proposal to the 8th Pay Commission regarding minimum wage determination. The Staff Side argues that the minimum wage should not be limited to just food and traditional needs.
According to the proposal, the following points should be included when determining the minimum wage:
-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
And the most crucial need today—digital and technological expenses, such as mobile phones, internet, and other everyday technological requirements.
The Staff Side argues that in today’s world, technology is not a luxury but a basic necessity, and therefore, it cannot be ignored in the minimum wage formula.
How does this proposal differ from the 7th Pay Commission?
The TOR of the 7th Central Pay Commission were broadly similar, but the 7th Pay Commission based its minimum wage determination on the standards of the 15th Indian Labour Conference (ILC) of 1957. These standards set a need-based minimum wage, taking into account the needs of a family consisting of an employee, their spouse, and two children under the age of 14.
The 7th Pay Commission believed this method was most appropriate for ensuring a healthy and dignified standard of living. However, that calculation did not separately include today’s essential expenses such as mobile phones, Wi-Fi, and internet access.
This is the gap that the staff side is now demanding be addressed in the 8th Pay Commission.
Latest status on the 8th Pay Commission
The process for the 8th Pay Commission has moved forward, and discussions on its scope and priorities have begun. While it may take some time for the commission’s recommendations to be released, the active involvement of employee organizations on issues such as minimum wage, pay matrix, and fitment factor is clearly visible.
Internal preparations have also begun in government departments regarding the financial impact of the upcoming pay revision, indicating that expectations for a pay hike are strong this time.
Employees’ expectations regarding the fitment factor
Employee organisations are closely watching the fitment factor:
During the 6th Central Pay Commission, the fitment factor was approximately 1.86.
In the 7th Pay Commission, it was set at 2.57, resulting in a minimum basic pay of Rs 18,000.
Now, employees and unions are expecting a higher fitment factor from the 8th Pay Commission. They argue that inflation, household expenses, children’s education, healthcare, and a technology-driven lifestyle have significantly increased expenses.
However, it is also believed that the final decision will be made by striking a balance between the government’s financial situation and the actual needs of the employees.
Summing up…
In conclusion, the discussion surrounding the 8th Pay Commission is not limited to just a salary increase. The debate is about how the minimum wage should be determined—based on old standards or taking into account today’s real needs.
If the commission accepts the staff side’s new formula and a better fitment factor, this Pay Commission could prove to be far more impactful for central government employees than previous commissions.