Minimum wage and fitment formula for Central Government Employees

Minimum wage and fitment formula for Central Government Employees

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

Source: http://karnatakacoc.blogspot.in/

7th CPC and Central Government finances – Karnataka COC

7th CPC and Central Government finances

Comrades,
There are various reports in the media about the impact of the 7th CPC recommendations on the common man and the government resources at large, the reports suggest that the Government may postpone the 7th CPC implementation also till its finances are set right.

These reports are totally wrong.

A) Let us examine the Revenue Secretary Shri Hasmukh Adhia statements which are also published in the news papers.

“So far, 1.8 crore refunds for assessment year 2015-16 have been processed, he said. In the past, refunds have been held up for years as the government sought to show healthier finances.”

“Data released by the government showed that over Rs 5 lakh crore was locked up in tax disputes at various levels, with some of the cases going back over 10 years. In value terms, over half the cases related to income tax with 30% of the cases involving corporation tax.”

B) The crude oil prices has come down from 140$ to just 30$ a barrel in last year thus the Central Government finances have improved a lot.

Read more at : http://karnatakacoc.blogspot.in/

Model Minimum Wage Calculation Using Dr. Aykroyd Formula and 15th ILO Norms as on 1.7.2015 – Karnataka COC

Model Minimum Wage Calculation Using Dr. Aykroyd Formula and 15th ILO Norms as on 1.7.2015 – Karnataka COC

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: http://karnatakacoc.blogspot.in/