Minimum Wage and 7th Pay Commission Pay increase

Minimum Wage and 7th Pay Commission Pay increase – Confederation of Central Government Employees and Workers Karnataka Branch estimates minimum wages and net increase out of 7th Pay Commission

Minimum Wages Fitment Formula and Wage Hike.

Comrades,

There are number of unwanted articles on minimum wage, fitment formula and wage hike on many websites which are not true and create confusion among the Central Government Employees. This type of the articles also give wrong impressions and give wrong signals to the Government, these articles are written without having basic knowledge of the price rise and minimum wage calculation.

The minimum wage calculation is given below. Hence it is requested to go through the below calculation of minimum wages, as the 7th CPC has indicated the use of using Dr. Aykroyd formula and 15th ILO norms for calculation of minimum wages. The rates are taken from Government shops (retail prices are 10% more than Government prices) . The rates to be taken up by the 7th CPC may vary only marginally.

We should actually wait for the 7th CPC to give its report and then we should react and staff side JCM shall take necessary steps in this regard. Let us stop all such unwanted gossips of minimum wage, fitment formula and wage hike. The model minimum wage calculated using Dr. Aykroyd formula and 15th ILO norms as on 1st July 2015 is given below.

Item	Per Month	Average	Amount
	3 units	Rate
	in Kgs/ mt
Rice (fine) & Wheat atta	42.75	40	1710
Dal	7.2	140	1008
Raw Vegetables	9	41	369
Green Vegetables	11.25	45	507
Other Vegetables	6.75	55	372
Fruits	10.8	75	810
Milk Dairy	18	33	594
Sugar	5	39.5	198
Edible Oil	3.6	114	410
Fish	2.5	410	1025
Meat Mutton	5	450	2250
Egg	90	5	450
Detergents*	1	161.58	162
Clothes	5.5	250	1375
Total			11241
Miscellaneous @ 20%			2248.2
Total			13489
Additional @ 25%			3372.3
Total			16861.5
Add 10% housing			1686
Minimum pay for unskilled worker in the erstwhile Group “D”			18547.5
Add 25% for Group “C” ( as proposed by 6th CPC )			4636.875
Total			23184.375
Add 6% more prices from 1st July 2015 to 1st Jan 2016			1391.04
Total amount		Rs 24575/-
Minimum pay for skilled worker in Group “C”		Say Rs 25,000/-

Fitment formula = Rs 25000/7000 = 3.5

The main goal is to educate the Central Government Employees and prepare for the struggle path in case the important demands expected of the 7th CPC are not met.

A) Minimum wage of Rs 25,000/- as per Government prices.

B) Fitment formula of 3.5

C) Wage hike of more than 60%.

D) Proper pay scales with proper increment rate.

E) Proper promotion policy and proper allowances.

F) Wage revision from 1/1/2014.

DA as likely on 1st Jan 2016 is likely at 125%.
After 7th CPC implementation it will DA will be zero %
Existing Basic Minimum wage is Rs 7000/- as on 1/1/06
Add 125% DA as on 1/1/2016 =Rs 8750/-
Total existing Minimum Wage as on 1/1/2016 is Rs 15750/-
If the Minimum wage is fixed at Rs 25,000/-
Net Increase shall be Rs 9250/-
Net Increase should be 60%.

Comradely yours

(P.S.Prasad)

General Secretary

Source: Confederation of Central Government Employees and Workers, Karnataka Branch

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Minimum Wage and 7th Pay Commission Pay increase – Confederation’s view