Minimum Pay and fitment formula by Confederation of Central Government Employees for 7th CPC

 Minimum Pay and fitment formula from 01.01.2016 calculated from Minimum Pay of Rs. 26,000/- with effect from 01.01.2014 proposed to 7th CPC by Confederation of Central Government Employees and Workers, Karnataka

 

The Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into following prices.

Table 5.1

PRICES OF THE INGREDINTS SPECIFIED IN TEH 15TH ILC TO CALCULATE THE MINIMUM WAGES AS ON 01.05.2014

Minimum pay for Group C added with 25% with the minimum of above

ITEMS

D

E
L
H
I

M
U
M
B
A
I
K
O
L
K
T
A
C
H
E
N
N
A
I
B
A
N
G
A
L
O
R
E
B
H
U
B
A
N
E
S
H
W
A
R
T
R
I
V
A
N
D
R
U
M
H
Y
D
E
R
A
B
A
D
A
V
E
R
A
G
E
PCU
/day
in
gms
Per
Month
3
CU
(inKg)
 
Rice/Wheat 44 49 44 48 47 58 42 44 47 475 gms 42.75 kg 2009
Dal (Toor/Urid/Moong) 99 102 140 100 97 97 95 94 103 80 gms 7.2 kg 742
Raw Vegetables 44 46 41 40 42 50 48 41 44 100 gms 9.00 kg 396
Green Vegitables 42 43 40 42 42 43 44 40 42 125 gms 11.25 kg 473
Other Vegitables 43 43 41 40 40 41 49 40 41 75 gms 6.75 kg 277
Fruits 111 114 108 112 109 108 108 109 110 120 gms 10.8 kg 1188
Milk 44 44 39 39 36 36 36 38 39 200 ml 18 ltr 702
Sugar/Jaggery 44 43 42 44 45 44 46 44 44 56 gms 5.00 kg 220
Edible Oil 148 159 142 159 142 141 141 140 138 40 gms 3.6 kg 497
Fish 315 325 315 375 305 310 335 320 325   2.5 kg 813
Meat 423 420 438 388 403 397 398 488 425   5.0 kg 2125
Egg 5 5 5 5 5 5 5 5 5   90 Nos 450
Detergents 404 414 379 399 379 399 399 399 396     396
Clothes 198 203 178 198 178 198 198 188 192   5.5 mtr 1056
Total   11344
Housing @ 7.5%   1174
Miscellaneous @20%   3129
Total   15647
Additional @ 25%   5214
Grand Total – Minimum pay for unskilled worker in the erstwhile Group D 20861
5214
Minimum Pay at Group C level 26075
Rounded off to 26000

20% net minimum miscellaneous charges towards fuel,electricity and water charges etc

The 7th CPC also would adopt Dr. Aykroyd formula for the computation of the minimum wage and thereafter the fitment formula is calculated.

Fitment formula = Minimum wage / Rs 7000

The Staff Side (JCM) has calculated the fitment formula of 3.72  that is  Rs 26000/ Rs 7000 as on 1st Jan 2014.

The 7th CPC has hinted that the date of effect of the 7th CPC shall be from 1st Jan 2016.  In this context the minimum wage and fitment formula, should be as follows.

The increase in prices between 1st Jan 2014 to 1st July 2015 is 18% as the DA as on 1st Jan 2014 was 100% and likely DA as on 1st July 2015 is 118%, In actual terms the retail prices have increased by over 25%. Even considering the 18% hike in prices from 1st Jan 2014 to 1st July 2015 and adding 7 % likely hike in prices for the period 1st July 2015 to Jan 2016 it works out to 25% hike in minimum wage.

Minimum wage calculated by the Staff Side (JCM) using Dr. Aykroyd formula as on 1st Jan 2014 was Rs 26,000/-

Adding 25% hike in prices between 1st Jan 2014 to 1stJan 2016,   the minimum wage should be Rs 32,000/- and accordingly the fitment formula should work out to 4.5 times.

If we calculate the minimum wage as on 1/1/2016 using the Dr. Aykroyd formula taking into account the current retail prices in Bangalore. It works out Rs 27,000/- and fitment formula as 3.85.

7th Pay Commission Minimum Pay Calculation

There are many rumors on the fitment formula and minimum wage, actually the 7th CPC has made only a draft and they will calculate the actual fitment formula and minimum wage only next month taking into the account the prices as on 1st July 2015 and adding weight age for the period 1st July 2015 to Jan 2016 and work out the fitment formula and minimum wage.

If any fitment formula less than 3.85 and minimum wage of Rs 27,000/- it will be denial of right wages for CG employees.

During the 6th CPC the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2006  as per the Dr. Aykroyd formula as Rs 10,000/-, where as the 6th CPC had provide the minimum wage as Rs 7000/- and  the 6thCPC had fixed fitment formula of 1.86. Most of the pay commissions have accpeted  70% of the staff side demand. We sincerely hope this 7th Central Pay Commission  will also calculate the right wages and fitment formula for the Central Government Employees.

Source: Confederation of Cental Government Employees and Workers, Karnataka

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