8th Pay Commission Update: The Staff Side of the National Council (Joint Consultative Machinery – NC-JCM) has proposed a minimum basic salary of Rs 69,000 for central government employees in its memorandum submitted to the 8th Pay Commission on April 14.
The proposal calls for a complete revision of the current pay structure, arguing that rising living expenses and changing social conditions require a more realistic salary framework.
The memorandum was submitted in response to the 8th Pay Commission’s questionnaire seeking suggestions from employees, pensioners and stakeholders regarding minimum pay, pay matrix, annual increments and pension revisions.
8th Pay Commission: Demand to Treat Family as Five Units Instead of Three
One of the biggest recommendations made by the Staff Side is changing the traditional family unit calculation used in earlier pay commissions. The memorandum proposed that a family should now be treated as five units instead of three. The suggested structure includes:
- Employee – 1 unit
- Spouse – 1 unit
- Two children
- Dependent parents – 0.8 units each
This brings the total to 5.2 units, which has been rounded off to five units.
“Minimum Pay must be based on a scientific living wage formula covering Food, Housing, Education, Health Care, Transport and the Technological / Digital Needs. The Present system of treating a family as 3 Units should be dispensed with and the Family should be treated as 5 Units (employee 1 Unit, Spouse 1 Unit (No Gender Discrimination), 2 Children, 0.8 Units each of the parents 0.8 Units. This works out to a total of 5.2 Units (Rounded off to 5 Units),” the memorandum said.
The Staff Side argued that under the Maintenance and Welfare of Parents and Senior Citizens Act, children are legally responsible for supporting dependent parents. Therefore, salaries should reflect these responsibilities and ensure a decent standard of living instead of mere survival.
8th Pay Commission: How the Rs 69,000 Minimum Pay Was Calculated
According to the memorandum, the proposed Rs 69,000 salary was calculated using a scientific living wage formula based on current retail prices and modern family requirements.
The calculation includes:
- Food and nutrition expenses
- Clothing costs
- 7.5% allocation for housing
- 20% for fuel, electricity and water charges
- 25% for skill development and education
- 5% additional expenses for marriage, recreation, festivals and technology needs
The Staff Side stated that technological and digital expenses must now be considered essential household requirements.
8th Pay Commission: Revised Food and Nutrition Standards Proposed
The memorandum also recommended updating nutrition standards used for salary calculations.
According to the Staff Side, the earlier norm of 2700 kcal is no longer sufficient. Instead, it proposed adopting the Indian Council of Medical Research (ICMR) recommendation of 3490 kcal, especially for employees engaged in physically demanding jobs.
The proposed food basket includes:
- Milk, eggs, meat and fish for adequate protein
- 30–35 litres of dairy products per month for a five-unit family
- Fruits and vegetables
- Balanced nutrition items
- Spices, beverages and processed food products
The memorandum stated that nutrition should support health, dignity and productivity, not just survival.
8th Pay Commission: Fitment Factor Proposal for Salary and Pension Hike
The Staff Side has also proposed a fitment factor of 3.833 under the 8th Pay Commission. The fitment factor is used to calculate revised salaries and pensions by multiplying the existing basic pay. If approved, the proposed fitment factor could significantly increase the salaries of central government employees and pensions of retired employees. The memorandum further stated that pensioners should receive the same fitment factor benefits as serving employees. It also noted that if the 8th Pay Commission is implemented retrospectively, employees and pensioners could receive substantial arrears.
8th Pay Commission: Proposal to Increase Annual Increment Rate
The memorandum recommended increasing the annual increment rate from the current 3% to 6%.
In addition, it proposed:
- Merger of several pay scales
- Structural balancing of revised pay levels
- Reducing excessive gaps between different pay grades
- Limiting the minimum-to-maximum salary ratio to 1:12
According to the Staff Side, reducing income disparity within government services would improve employee morale and create a more balanced pay structure.
8th Pay Commission: NC-JCM Says Higher Salaries Will Boost Economy
The Staff Side argued that higher government salary expenditure should be viewed as an economic investment rather than a burden.
It stated that the central government currently spends nearly 13% of its revenue expenditure on salaries, allowances and pensions. This amount is expected to increase further after the implementation of the 8th Pay Commission during 2026-27.
However, the memorandum claimed that higher salaries would improve purchasing power, increase consumer spending and ultimately lead to higher tax collections. According to the Staff Side, pay revisions can positively contribute to economic growth and long-term fiscal sustainability.
