Staff Demands Modern Formula for 8th Pay Commission: Add Mobile, Internet and Digital Costs to Minimum Salary Calculation
As discussions intensify around the upcoming 8th Pay Commission, employee unions have placed a major demand on the table: update the formula used to determine minimum salary. They argue that the traditional components—food, clothing and housing—no longer reflect the financial reality of today’s households. Instead, essential digital expenses such as mobile bills, internet charges and online service costs must also be factored into the minimum wage.
This demand has sparked a fresh debate, with staff bodies insisting that the existing approach, based on decades-old standards, is outdated in a digital-first era.
Why Employees Want a New Formula for Minimum Salary
The National Council (JCM) Staff Side has written to the government highlighting that household spending patterns have changed dramatically. According to them, the minimum salary should be calculated using a formula that mirrors the modern lifestyle, not one that was relevant half a century ago.
Earlier, a family’s basic needs included food grains, milk, clothing, electricity, fuel and housing. But today, a significant part of monthly expenses goes toward mobile data, internet bills, digital payments, online education, and other virtual services. The staff side argues that ignoring these costs results in a minimum wage that does not match real-life living expenses.
Gaps in the 8th Pay Commission’s Current ToR
While the Terms of Reference (ToR) of the 8th Pay Commission mention that the salary structure should be designed to attract and retain talent, they do not specify how the minimum salary should be calculated.
This omission, employee unions say, leaves a major gap. Without a defined methodology, the commission may again rely on outdated principles, which could lead to an unrealistic base pay. Staff representatives want the ToR to clearly instruct the commission to use modern consumption patterns when calculating the minimum wage.
The 7th Pay Commission Followed an Old Standard
The 7th CPC adopted the 1957 Indian Labour Conference (ILC) norms. These norms calculated the minimum wage based on a family’s needs at that time. Though reasonable for that period, the formula has not evolved to match the country’s digital transformation.
The ILC method does not include mobile phones, Wi-Fi connections, broadband, digital platforms or online service charges—all of which are now part of daily life.
Why the Old Formula No Longer Works
Employee unions argue that the biggest flaw in the old ILC framework is its inability to accommodate digital necessities.
In an age where everything from banking to education has moved online, a household cannot function without internet access. Children require digital tools for learning, and adults depend on mobile phones for work, communication, and financial transactions. Simply put, digital connectivity has become as essential as electricity or fuel.
Thus, excluding these expenses means the minimum salary fails to cover the actual cost of living.
Why a Modern Formula Is Crucial for Employees
The staff side claims that inflation, rising digital dependency and lifestyle changes require a more holistic view of household expenses. A salary structure based only on food, clothing and shelter does not reflect today’s financial pressures. If digital needs are not included, employees’ real purchasing power will continue to weaken.
Updating the formula will help ensure that minimum salary aligns with contemporary needs and gives employees adequate financial security.
What Happens Next?
The staff side will formally submit its proposal to the 8th Pay Commission. The commission is expected to review the recommended formula before drafting its final suggestions for the government.
There is hope that the 8th CPC will create a salary structure that balances traditional needs with modern-day requirements—offering a more practical and realistic minimum wage for millions of employees.
