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Tuesday, September 27, 2016

Minimum wage and fitment formula for Central Government Employees


Comrade,

                 The 7th CPC while calculating the minimum wage of Central Government Employees has arrived at Rs 18,000/- the 7th CPC has erred in prescribing  provision to cover education, recreation, ceremonies, festivals and medical expenses has been moderated to 15 percent  against the provision of 25% . Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991 , the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.
      The Hon’ble Minister of Labour & Employment Shri Bandaru Dattatreyaji in his press statement on 24-September-2016  has stated in Understanding Minimum Wages and Bonus article as follows.
“The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are: (a) consumption units for one wage earner; (b) minimum food requirements of 2700 calories per average Indian adult; (c) clothing requirements of 72 yards per annum per family; (d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and (e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.
In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.”
  If this provision is alone adopted should have been adopted by the 7th CPC, the minimum wage would have increased by more than 10% and worked out to Rs 20,000/-. The fitment formula will work out to 2.86. If the entire minimum wage is recalculated based on actual retail prices as on July 2015 without applying average of 12 months  and correct methodology the minimum  wage would be Rs 26,000/ and fitment formula would be around 3.5 .
The minister statement should be applied by the Government in true spirits and the minimum wage and fitment formula should be enhanced accordingly.

                                                                        Comradely yours
                                                                        (P.S.Prasad)
                                                                      General Secretary

5 comments:

Indus 50 said...

Are you so gullible to think writing letters will solve the problems of Central employees! We have an FM who is cunning and mean minded. Do you think he will part with any money! Allowance committee is going to be a farce , you will soon realise. Modi and his FM need only secretaries and the rest of them are decimated as beggars! If you dont realise it then. Mr. Secretary you are the biggest fool! Jaitley hates the middle class and bulk of govenment come under that class

Amresh Kumar said...

Agree on the above comment...
Four months to be completed in November... Let's see what the Goverment is doing in favour of its employees...!

Amresh Kumar said...

Agree on the above comment...
Four months to be completed in November... Let's see what the Goverment is doing in favour of its employees...!

vathalayam ... said...

If what the Secretary says is correct then what the central leadership was doing?.Hope they will take up the issue of fitment and minimum wage.

vathalayam ... said...

If what the Secretary says is correct then what the central leadership was doing?.Hope they will take up the issue of fitment and minimum wage.