7th Pay Commission – Minimum wage and fitment formula for Central
Government Employees – Minimum Wage and Fitment formula will be Rs.
20000 and 2.86 respectively if Minister’s statement is adopted
Confederation of Central Government Employees and Workers Karnataka State remarks on minimum wage and fitment formula.
Comrade,
The 7th CPC while calculating the minimum wage of Central Government
Employees has arrived at Rs 18,000/- the 7th CPC has erred in
prescribing provision to cover education, recreation, ceremonies,
festivals and medical expenses has been moderated to 15 percent against
the provision of 25% . Supreme Court’s ruling in the Raptakos Brett Vs
Workmen case of 1991, the Hon’ble Supreme Court delivered a historic
judgement and directed that children’s education, medical requirement,
minimum recreation including festivals/ceremonies, provision for old
age, marriage etc. should further constitute 25% of the minimum wage and
be used as a guide in fixation of minimum wage.
The Hon’ble Minister of Labour & Employment Shri Bandaru
Dattatreyaji in his press statement on 24-September-2016 has stated in
Understanding Minimum Wages and Bonus article as follows.
“The norms recommended by the Indian Labour Conference, in 1957, fox
fixing the minimum wages are: (a) consumption units for one wage earner;
(b) minimum food requirements of 2700 calories per average Indian
adult; (c) clothing requirements of 72 yards per annum per family; (d)
rent corresponding to the minimum area provided for under Government’s
Industrial Housing Scheme; and (e) fuel, lighting and other
miscellaneous items of expenditure to constitute 20% of the total
minimum wage.
In 1991, the Hon’ble Supreme Court delivered a historic judgement and
directed that children’s education, medical requirement, minimum
recreation including festivals/ceremonies, provision for old age,
marriage etc. should further constitute 25% of the minimum wage and be
used as a guide in fixation of minimum wage.”
If this provision is alone adopted should have been adopted by the
7th CPC, the minimum wage would have increased by more than 10% and
worked out to Rs 20,000/-. The fitment formula will work out to 2.86. If
the entire minimum wage is recalculated based on actual retail prices
as on July 2015 without applying average of 12 months and correct
methodology the minimum wage would be Rs 26,000/ and fitment formula
would be around 3.5.
The minister statement should be applied by the Government in
true spirits and the minimum wage and fitment formula should be enhanced
accordingly.
Comradely yours
(P.S.Prasad)
General Secretary