The staff side of the National Council (Joint Consultative Machinery NC-JCM), which represents unions of central government employees, has demanded a minimum wage of Rs 69,000 in a memorandum submitted to the 8th Pay Commission on April 14. This demand is not just about a higher fitment factor, but reflects a deeper structural change in how government salaries can be decided in the future. More importantly, the proposal is part of a broader consultation process initiated by the government, under which stakeholders were invited to present their views on key topics. The staff side of the NC-JCM presented recommendations on eight topics in its memorandum to the 8th Pay Commission. One of the most important of these topics is “pay related matters”, which includes issues like minimum wage, basic pay, annual increment and salary matrix structure.
How is the consultation process shaping the salary revision?
As part of its preparatory exercise, the 8th Pay Commission sought suggestions from employees, pensioners and stakeholders through a structured questionnaire made available on its official portal and MyGov platform.
Under Theme 1 (Pay Matters), the Commission specifically asked stakeholders to share their views on basic pay, minimum pay, annual increments, salary levels and metrics, and maximum pay structure.
The staff side NC-JCM responded with a detailed memorandum, arguing that the existing salary structure needed to be completely overhauled to take into account the rising cost of living and changing social realities. The special thing is that the window for giving such suggestions will remain open till April 30, 2026, so that more and more people will be able to participate in this process.
The memorandum states that the minimum wage should be based on a scientific ‘living wage’ formula, which includes food, housing, education, healthcare, transportation and technical/digital needs. The current system of considering a family as 3 units should be abolished and the family should be considered as 5 units (employee 1 unit, spouse 1 unit (without any gender discrimination), 2 children, parents 0.8 units each). This makes a total of 5.2 units (which has been rounded off to 5 units).
From 3 members to 5: Major changes in salary calculation
At the heart of the demand for Rs 69,000 is a new move away from the traditional 3-unit family model used in previous pay commissions.
The staff side has proposed a 5-unit family structure, which includes:
Employees: 1 unit
Spouse: 1 unit
Two children: 0.8 units each
Dependent parents: 0.8 units
This change reflects the fact that many government employees not only support their spouses and children, but also their elderly parents. The memorandum emphasizes that such responsibility is also supported by legal provisions such as the ‘Maintenance and Welfare of Parents and Senior Citizens Act’. Additionally, it is also in line with the ‘Code on Social Security, 2020’, which expands the definition of “family” to include dependent parents. Thus, this further strengthens the demand for revising the basis of pay calculation.
What kind of minimum salary can be
Using this revised family structure, the staff side has set a minimum wage of Rs 69,000 based on a scientific “living wage” formula. This calculation includes food and nutrition expenses; Housing (7.5% of total expenditure); Fuel, electricity and water (20%); Education and Skills Development (25%); social obligations such as festivals, weddings and entertainment (25%); and technology and digital needs (5%). The memorandum emphasizes that wages should ensure dignity, efficiency and productivity, rather than merely meeting subsistence needs.
Food norms revised: Major factor increasing cost
A major contribution to the higher salary estimate is the revision in dietary norms. While earlier pay commissions relied on a benchmark of 2700 kcal, the current proposal adopts a higher standard suggested by the Indian Council of Medical Research (ICMR), which is around 3490 kcal – especially for employees engaged in physically demanding jobs.
The revised consumption basket includes protein-rich foods such as milk, eggs, meat and fish. It also includes consumption of 3035 liters of dairy products per month for a family. Fruits and vegetables, other essentials like spices and beverages etc. are also included. This new estimate significantly increases the estimated monthly expenses, which also increases the amount of the minimum wage.
Big impact on fitment factor and salary
On the basis of minimum salary of Rs 69,000, the staff side has proposed a fitment factor of 3.83 for revision of pay of existing employees and pensioners. If this is accepted, it will be a huge increase compared to the 7th Pay Commission’s fitment factor of 2.57 and will lead to significant changes at all levels of pay. Some other things have also been included in these recommendations, which include the implementation of the Pay Commission from January 1, 2026, pensioners also getting the benefit of revised salary, including those who retired before 2026. It also includes bringing autonomous bodies and institutions under its ambit.
Structural reform proposal
The memorandum suggests broader reforms that go beyond salary levels: increasing annual salary increases from 3 percent to 6 percent, merging some salary levels so that salary increases are not constrained; And limiting the difference between minimum and maximum pay to the ratio of 1:12. The objective of these changes is to create a more balanced and equitable salary structure, as well as to ensure employee morale and career progression.
Economic Impact
The staff side also refutes the argument that higher salaries will put a burden on the government exchequer. At present, salary related expenditure is about 13 percent of the revenue expenditure of the central government. However, they argue that wage revision increases the purchasing power of people, boosts consumption demand and increases tax collection, which can boost the economy. From this perspective, wage increases are not seen simply as an expense, but as an investment in economic growth and human capital.
Big changes can be seen
The proposal for a minimum wage of Rs 69,000 shows how the 8th Pay Commission process is changing—it has become a more consultative and data-driven process than just a routine pay-revision process. Having sought input from many different stakeholders and being based on key themes, the final recommendations are likely to reflect a broad consensus. The emphasis on the 5-member family model and the principle of ‘living wage’ indicates that the upcoming pay revision could be one of the biggest changes to the government pay structure in recent years.
