7th CPC Minimum Pay – New Pay Commission Updates

7th Pay Commission: Change in Minimum Pay for CG Employees?

7th Central Pay Commission Minimum Pay and Fitment Factor issues are major demands of Central Government Employees.

33 lakhs Central Government Employees under the banner of National Joint Council of Action (NJCA) comprising Railways, Defence and Confederation has struggled with long pending demands of CG Employees.

NJCA Leaders frequently remember the situation of a crucial meeting with Home Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitly and Railway Minister Shri Suresh Prabhu on 30th June 2016.

After discussing the demands raised in the Charter of demands, the Ministers assured that a high level committee will be constituted to consider the demands raised by NJCA especially the demand for improving the minimum wage and fitment formula.

As no written communication or minutes regarding the assurances given by Group of Ministers is forthcoming, the NJCA met again and 6th July and decided to go ahead with the strike decision.

Again Home Minister Shri Rajnath Singh called the NJCA leaders for discussion on 6th July and reiterated the assurances already given on 30th June and stated that the Finance Minister will issue a press statement on 6th July itself confirming the assurances given by the Group of Ministers.

There will be a new scope with our new Finance Minister Nirmala Sitharaman and expect some goog news soon in this regard!

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How to calculate Minimum Pay in 7th CPC?

Estimate the minimum pay in the government, the VI CPC used the norms set by the 15th Indian Labor Conference (ILC) in 1957 to determine the need-based minimum wage for a single industrial worker. The norms set by the ILC are as below:

A need-based minimum wage for a single worker should cover all the needs of a worker’s family. The normative family is taken to consist of a spouse and two children below the age of 14.

With the husband assigned 1 unit, wife, 0.8 unit and two children, 0.6 units each, the minimum wage needs to address 3 consumption units;

ii. The food requirement per consumption unit is shown in the Annexure to this chapter. The specifications were derived from the recommendations of Dr. Wallace Aykroyd, the noted nutritionist, which stated that an average Indian adult engaged in moderate activity should, on a daily basis, consume 2,700 calories comprising 65 grams of protein and around 45-60 grams of fat.

Dr Aykroyd had further pointed out that animal proteins, such as milk, eggs, fish, liver and meat, are biologically more efficient than vegetable proteins and suggested that they should form at least one-fifth of the total protein intake;

iii. The clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum (5.5 meters per month) for the average worker’s family. The 15th ILC also specified the associated consumption of detergents, which can be seen in the Annexure;

For housing, the rent corresponding to the minimum area provided under the government’s industrial housing schemes is to be taken. The 15th ILC kept it at 7.5 percent of the total minimum wage;

v. Fuel, lighting and other items of expenditure should constitute an additional 20 percent of the total minimum wage.