Minimum Pay Requirment Calculated by 7th CPC
To estimate the minimum pay in the government, the VII Central Pay Commission (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 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.
- The food requirement per consumption unit is shown in the Annexure to this 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.
- 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 5 percent of the total minimum wage.
- Fuel, lighting and other items of expenditure should constitute an additional 20 percent of the total minimum wage.
The Central Pay Commission considered additional components of expenditure to cover for children’s education, medical treatment, recreation, festivals and ceremonies. This followed from the Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991 for determination of minimum wage of an industrial worker. The Supreme Court had prescribed this amount at 25 percent of the total minimum wage calculated from the first five components. However, in considering this additional component the VI CPC took note of the educational allowance and medical facilities being provided by the government.
After considering all relevant factors the Commission is of the view that the minimum pay in government recommended at Rs.18000/- per month,w.e.f.01.01.2016, is fair and reasonable and one which, along with other allowances and facilities, would ensure a decent standard of living for the lowest ranked employee in the Central Government.