8th Pay Commission: Why has the minimum wage become a concern? What are the demands of employees? Learn the full details.

8th Pay Commission: Employees’ concerns regarding the minimum wage and fitment factor in the 8th Pay Commission have increased. Unions are demanding a new pay scale. However, the government’s stance is still unclear. Learn the full details.

8th Pay Commission: Discussions between central government employees and unions regarding the 8th Pay Commission have intensified. This time, the focus is primarily on the minimum wage and the fitment factor. Employee organizations say that the method of determining salaries should be changed to reflect the old framework and adapt to current needs.

What is stated in the Terms of Reference?

Under the Pay Commission’s Terms of Reference (TOR), the Commission is required to review salaries, allowances, and other benefits, and to suggest changes that are practical and meet the needs of employees. This requires considering the changing nature of work, the specific needs of different departments, and the balance of expenses.

The TOR also clarifies that the salary structure should be such that it attracts talented people to government service and increases efficiency, accountability, and responsibility.

Why is the minimum wage formula controversial?

The TOR does not clearly state the formula for determining the minimum wage. Employee unions are demanding a new methodology due to this shortcoming. They argue that calculations based solely on old standards are no longer sufficient in today’s times and require changes.

What are the main demands of the staff side?

In a recent meeting, the staff side of the NC-JCM decided to submit a detailed proposal to the 8th Pay Commission regarding the minimum wage. The staff side stated that the minimum wage should not be limited to food and clothing.

They demand that the following factors be included in determining the minimum wage:

Adult calorie needs.

Number of family members.

Food, clothing, and other non-food needs.

Actual retail prices at government ration shops and cooperative stores.

Additional expenses related to festivals and social responsibilities.

Digital and technological expenses, such as mobile phones, internet, and everyday technology needs.

The staff side argues that technology is no longer a luxury in today’s times, but a basic necessity. Therefore, it cannot be excluded from the minimum wage formula.

How is this proposal different from the 7th Pay Commission?

The 7th Central Pay Commission’s TOR was similar, but it based its minimum wage on the 15th Indian Labour Conference (ILC) standards of 1957. It considered the needs of a family consisting of an employee, their spouse, and two children under the age of 14.

The 7th Pay Commission believed that this approach was appropriate for ensuring a respectable standard of living. However, that calculation did not separately include modern-day essential expenses such as mobile phones, Wi-Fi, and internet. Now, employee organizations want this shortcoming to be addressed in the 8th Pay Commission.

The latest situation on the 8th Pay Commission

The 8th Pay Commission process has progressed. Discussions have begun on its scope and priorities. Even though it may take some time for the recommendations to come, the activism of employee organizations is clearly visible on issues like minimum wage, pay matrix and fitment factor.

Government departments have also begun internal preparations regarding the financial impact of the upcoming pay revision. This indicates that employees’ expectations for a pay increase are higher this time than before.

Employees’ Expectations on the Fitment Factor

Employees are also closely monitoring the fitment factor. The 6th Pay Commission’s fitment factor was approximately 1.86. The 7th Pay Commission increased it to 2.57, establishing a minimum basic salary of ₹18,000.

Now, employees and unions are expecting a higher fitment factor from the 8th Pay Commission. They say that inflation, household expenses, children’s education, health expenses, and a technology-driven lifestyle have significantly increased expenses. However, it is also believed that the final decision will be made after balancing the government’s financial situation with the actual needs of employees.

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