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Thursday, June 13, 2013

MINIMUM WAGES FOR CENTRAL GOVT EMPLOYEES IN 7th CPC-REASONING GIVEN BY CONFEDERATION.

Honourable Secreatary General of Confederation of Central Government Employees and Workers Karnataka State has published a useful post regarding minimum wages for central govt  employees  in his blog.CGE Portal reproduced the same for your reference.
Need-Based Minimum Wage
Comrade,                
    The Sixth Central Pay Commission has recommended a minimum wage of Rs 6600/- per month   against the demand of Rs 10,000/-  per month as worked out by Staff side of JCM, Today the minimum need based wage works out to Rs 15,000/ per month+ HRA+ allowances. hence there is  three times increase in actual prices calculated by the 6th CPC and the current prices. The current wages and HRA of the CG Employees should be doubled atleast.
        The most comprehensive criteria for covering all the basic needs were evolved by the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages.  The norms are that a need-based minimum wage for a single worker should cover all the needs of a worker’s family consisting of a spouse and two children.  
         The food requirement was to be 2,700 calories, 65 grams of protein and around 45-60  grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult of moderate activity.  Dr Aykroyd 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
        Dr Aykroyd worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations.  In 1935, he was appointed director of the government's nutritional research centre in India, situated in Coonoor in the south.
The 15th ILC further resolved that clothing requirements should be based on per capita consumption of 18 yards per annum, which gives 72 yards per annum for the average worker's family.  For housing, the rent corresponding to the minimum area provided under the government's industrial housing schemes was to be taken.  Fuel, lighting and other items of expenditure were to constitute an additional 20% of the total minimum wage.
The Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one step further, and held that besides the five components enunciated by the 15th ILC, minimum wages should include a sixth component, amounting to 25% of the total minimum wage, to cover children's education, medical treatment, recreation, festivals and ceremonies. The SC also observed that a wage structure including the above six components would be “nothing more than minimum wage at subsistence level” which the workers must get “at all times and under all circumstances”.
Minimum Salary-Analysis &Recommendations para 2.2.15
 The Commission, however, agrees that the norms set by the 15th International Labour Conference (ILC) are appropriate for computing minimum salary. It is also observed that the minimum salary is applicable at the time a person joins the Government which will usually be at a young age when a person may be just married and will not have responsibility of parents or many children. Accordingly, the family unit for minimum salary can only be taken as three.
COC View:
The Minimum Salary should be based on 6 units not three units as per 6th CPC calculation. As both parents and two children are depending on the salary of Government servant apart from spouse. the additional burden the employees will carry after a few years of service  as his parents would have retired from service and are wholly dependent on him also  his children would have stepped into school / college level,  even small baby requirements are much unlike in the past years, the  hence the minimum wage he gets will not compensate with the family financial burden Hence the whole calculations needs a undergo a drastic change in next CPC taking into account of 6 units rather than 3 units .
Table: 
Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms as per Table 2.2.1 of the 6th CPC report and the minimum wage as per current prices we compare minimum wage should be  three times the 6th CPC recommendations. 
Items
Per day
PCU
(In
grams
Per
month
3CU
(In kg)
Price per
kg. taken
by 6th CPC

(In Rs)
Total cost
as per
rates of 6thCPC
(in Rs)
As on 1/1/2006
Price per
kg. as per
prevailing
rates
(in Rs)
1/1/13
At Bangalore
Total 
cost
as per
prevailing
rates
(in Rs)
1/1/2013
Rice/wheat
475
42.75
18
769.5
55
2351
Dal (Toor/
Urad /
moong
80
7.2
40
288
70
504
Raw Veg.
100
9.00
10
90
40
400
Greenleaf Veg
125
11.25
10
112.5
30
300
Other Veg.
75
6.75
10
67.5
45
450
Fruits
120
10.80
30
324
80
864
Milk
200 Ml
18 Lt.
24.00
432
30
540
Sugar and
Jaggery
56
5.00
24.00
120
45
225
Edible Oil
40
3.6
50
180
100
360
Fish

2.5
120
300
180
450
Meat

5.00
120
600
375
1875
Egg

90
02
180
04
360
Detergents etc

200

200
400
400
Clothing

5.5 Mt.
80/Mt
440
200
1100
Total



4103.5

10180
Misc. @ 20%*



827

2035
Total



4930.5

12215
Addl. Exp @
25%**



400

3054
Total



5330.5

15269

Housing @
10%***




148

600^
Grand Total



5478.5

15869

Source : Average market rates in Kolkata, Chennai, Delhi and Mumbai as indicated in the Economic Times &other major dailies (element of 20% has been added to cover the increase in cost in retail sale).

Notes PCU = Per day Consumption Unit 3CU = Three Consumption Units that is wife, husband and a child no parents or second child is taken into account.
* 20% Miscellaneous charges towards fuel, electricity, water etc.
** Additional Expense at the rate of 25% includes expenditure towards education,
medical treatment, housing, recreation, festivals etc.
# Has been taken as Rs.400 because separate allowances for education, medical
treatment and housing exist in the Government. Consequently, only the expenditure
towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an average rateof 3% of the basic pay. 

Comradely yours

(P.S.Prasad)
General Secretary

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