Mr.P.S.Prasad, the General Secretary of the Confederation of Central Government Employees and Workers Karnataka State has raised a valid question and has also explained clearly where the 7th pay commission went wrong. which the central government union leaders probably missed to advocate.
He has stated, the 7th pay commission 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.
If we go back in history, 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.
The Hon’ble central 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.
If the above provisions alone had been adopted by the 7th pay commission, 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.
He further, reiterates, The minister’s statement should be applied by the Government in true spirits and the minimum wage and fitment formula should be enhanced accordingly.