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Minimum Wages Fitment Formula and Wage Hike

Admin September 12, 2015

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. 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 five important things expected of the 7th CPC are not met.

A) Minimum wage of Rs 25,000/-
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.

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/

Filed Under: 7th Pay Commission, LATEST 7TH PAY COMMISSION NEWS

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Comments

  1. C.I.PANDIT. says

    April 23, 2017 at 5:13 pm

    The truth is bitter, With due regards, Baniagiri or incapability of the Finanance Minister is solely responsible for the abnormal delay in keping the CG Employees away from their rightful claim of min wage in comparision with the High rank Officers, who gained special favovur from the Hon’ble & Learned head of the 7th. CPC COMISSION, that created disparity & the Govt. is forced to appoint further higher Commissins, who have not been able to solve the problem even after the date prmised by our REVERED & HON’BLE PRIME MINISTER.
    WITH HIGHEST REGARD & REGARDS.

  2. Shiv raj singh says

    September 14, 2015 at 9:52 am

    On receipt of chart

  3. Rashmi Ranjan Sahu says

    September 13, 2015 at 4:07 pm

    it should be the real pay fixation in this high inflation age. below this fitman it would not be fair for employee.

  4. Suresh says

    September 12, 2015 at 10:10 pm

    Mr.Prasad is only genius in India on wage calculation and he is only right and capable person to write such articles in respect of CG Employees. Keep it up…!

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