8th Pay Commission: Employees' association suggest ₹52,000 minimum pay at 2.92 fitment factor

While the 8th Central Pay Commission is months away from submitting its final report, it has been receiving suggestions related to minimum pay and fitment factor from various employees unions.

Another association of employees has recommended a lower minimum pay and fitment formula: ₹52,000 at 2.92 fitment formula. This suggestion has come from the Indian Railways Technical Supervisors' Association (IRSTA).

In its memorandum to the 8th CPC submitted in May 2025, the IRSTA said, "In a modern welfare state, such as ours, Government as the employer has a responsibility for meeting the essential needs of its lowest paid Employee and for maintaining his health and efficiency," IRSTA said.

The association also suggested the following:

• Consumption expenses towards bottled drinking water, internet charges, premium towards health insurance should be made part of calculation for fitment factor. Consumption units per family should be taken as 4.6 instead of 3 including responsibility parents and children.

• Minimum pay calculation by adopting 7th CPC method and retail price index of labour bureau. a) Food, clothing and detergent products, their respective quantities specified by the 15th ILC

b) Prices of all commodities were sourced from Labor Bureau statistics.

c) Calculation of minimum pay adopting retail price index of labour bureau for 4.8 consumption units/family.

d) 20% for fuel & lighting

e) 15% is towards recreation, ceremonies and festivities:

f) 25% for skill factor

g) 3% for housing

h) New items, Expenses for internet, bottled drinking water and medical insurance added

i) To compensate drawbacks in new series of CPI(IW) 2016 and other inconsistences 25% added.

j) When rounded off to nearest hundred minimum pay will be Rs. 52,600 – 2.92 times of 7th CPC minimum pay.

According to IRTSA, the 7th CPC took the food requirement and others derived from the recommendations of Dr. Wallace Aykroyd, and Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991 for determination of minimum wage of an industrial worker.

It further said that adding 20% for fuel & lighting, 15% is towards recreation, ceremonies and festivities, 25% for skill factor and 3% for housing expenses arrived in the year 1991 should be revised.

Additionally, common items of expenses like medical insurance, bottled drinking water, communication, etc., should be included.

The 8th Pay Commmission has not said anything official about minimum pay and fitment factor. It may submit its final report by May, 2027.