• Breaking News

    Monday, 14 September 2015

    MINIMUM WAGES RS. 25,000, WAGE HIKE 60%, FITMENT FORMULA 3.5 SHOULD BE IN 07TH PAY COMMISSION: 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
    3 units
    in Kgs/ mt
    Average
    Rate
    Amount
    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/-

    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

    Sd/-
    (P.S.Prasad)
    General Secretary

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