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7th Pay Commission Fitment Formula and Minimum Wage Calculations: Updates by Karnataka COC

Minimum Wage and Fitment Formula.

Shri.P.S.Prasad General Secretary of COC Karnataka expressed his views
about the calculation of fitment formula and computation of minimum wage
of 7th CPC on its blog. He hinted in this article that most of the pay
commissions have accpeted 70% of the staff side demand. Especially NC
JCM Staff Side demands to fix minimum wage at Rs.26000.

The Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into following prices.

Table 5.1

PRICES OF THE INGREDINTS SPECIFIED IN TEH 15TH ILC TO CALCULATE THE MINIMUM WAGES AS ON 01.05.2014

ITEMS D
E
L
H
I
M
U
M
B
A
I
K
O
L
K
T
A
C
H
E
N
N
A
I
B
A
N
G
A
L
O
R
E
B
H
U
B
A
N
E
S
H
W
A
R
T
R
I
V
A
N
D
R
U
M
H
Y
D
E
R
A
B
A
D
A
V
E
R
A
G
E
PCU
/day
in
gms
Per
Month
3
CU
(inKg)
Rice/Wheat 44 49 44 48 47 58 42 44 47 475 gms 42.75 kg 2009
Dal (Toor/Urid/Moong) 99 102 140 100 97 97 95 94 103 80 gms 7.2 kg 742
Raw Vegetables 44 46 41 40 42 50 48 41 44 100 gms 9.00 kg 396
Green Vegitables 42 43 40 42 42 43 44 40 42 125 gms 11.25 kg 473
Other Vegitables 43 43 41 40 40 41 49 40 41 75 gms 6.75 kg 277
Fruits 111 114 108 112 109 108 108 109 110 120 gms 10.8 kg 1188
Milk 44 44 39 39 36 36 36 38 39 200 ml 18 ltr 702
Sugar/Jaggery 44 43 42 44 45 44 46 44 44 56 gms 5.00 kg 220
Edible Oil 148 159 142 159 142 141 141 140 138 40 gms 3.6 kg 497
Fish 315 325 315 375 305 310 335 320 325 2.5 kg 813
Meat 423 420 438 388 403 397 398 488 425 5.0 kg 2125
Egg 5 5 5 5 5 5 5 5 5 90 Nos 450
Detergents 404 414 379 399 379 399 399 399 396 396
Clothes 198 203 178 198 178 198 198 188 192 5.5 mtr 1056
Total 11344
Housing @ 7.5% 1174
Miscellaneous @20% 3129
Total 15647
Additional @ 25% 5214
Grand Total – Minimum pay for unskilled worker in the erstwhile Group D 20861
Minimum pay for Group C added with 25% with the minimum of above 5214
Minimum Pay at Group C level 26075
Rounded off to 26000

The 7th CPC also would adopt Dr. Aykroyd
formula for the computation of the minimum wage and thereafter the
fitment formula is calculated.

Fitment formula = Minimum wage / Rs 7000

The Staff Side (JCM) has calculated the fitment formula of 3.72 that is Rs 26000/ Rs 7000 as on 1st Jan 2014.

The 7th CPC has hinted that the date of
effect of the 7th CPC shall be from 1st Jan 2016. In this context the
minimum wage and fitment formula, should be as follows.

The increase in prices between 1st Jan
2014 to 1st July 2015 is 18% as the DA as on 1st Jan 2014 was 100% and
likely DA as on 1st July 2015 is 118%, In actual terms the retail prices
have increased by over 25%. Even considering the 18% hike in prices
from 1st Jan 2014 to 1st July 2015 and adding 7 % likely hike in prices
for the period 1st July 2015 to Jan 2016 it works out to 25% hike in
minimum wage.

Minimum wage calculated by the Staff Side (JCM) using Dr. Aykroyd formula as on 1st Jan 2014 was Rs 26,000/-

Adding 25% hike in prices between 1st
Jan 2014 to 1st Jan 2016, the minimum wage should be Rs 32,000/- and
accordingly the fitment formula should work out to 4.5 times.

If we calculate the minimum wage as on
1/1/2016 using the Dr. Aykroyd formula taking into account the current
retail prices in Bangalore. It works out Rs 27,000/- and fitment formula as 3.85.

minimum+wage+calculation+bangalore+rates

There are many rumors on the fitment formula and minimum wage, actually the 7th CPC has made only a draft and they will calculate the actual fitment formula and minimum wage only next month taking into the account the prices as on 1st July 2015 and adding weight age for the period 1st July 2015 to Jan 2016 and work out the fitment formula and minimum wage.

If any fitment formula less than 3.85 and minimum wage of Rs 27,000/- it will be denial of right wages for CG employees.  

During the 6th CPC the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2006  as per the Dr. Aykroyd formula as Rs 10,000/-, where as the 6th CPC had provide the minimum wage as Rs 7000/- and  the 6th CPC had fixed fitment formula of 1.86. Most of the pay commissions have accepted 70% of the staff side demand. We sincerely hope this 7th Central Pay Commission  will also calculate the right wages and fitment formula for the Central Government Employees.

Source: Karnataka COC

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COMMENTS

WORDPRESS: 6
  • Yes, exactly please see the outside market rates not in PDS rates

  • Devendra dinakar , in Bangalore city 1kg normal rice is 36 rs for idaly and dosa ,(broken rice) , and eatable one starts from 40 to 70 kg , and 10 kg shakthi bog atta cost 30 kg , 1 kg any fish is costing from 150 to above 900 , and 1kg chicken coast from 120 live after cleaning that we wll get 650 gm it means 1kg is near to 190 rs , and any vegetable is not less than 40 kg , please visit the Hpcomes websites ,and Nadhini milk is 36 /litter and ghee starts from 400 and above .oil starts from 95 to above etc.
    so do not quote government PDS rates because we are not issued with BPL ration cards.And per month we are seeing the stars at the grocery shops .Petrol costs 73.50 rs , etc

    • Devendra Dinker 9 years ago

      Is a person getting minimum salary buying Shakti blog aata, eating the ration per day as in your table? Why not give rates of KFC or Mc Donald? Don't try to be selfish, Think of common Indian as well. Nation First.

  • Devendra Dinker 9 years ago

    Cost of wheat and rice are Rs 15 & 30 per kg respectively in open market. However most will getting ration under PDS system under APL and would be spending very small amount. Units consumed per day for wheat/rice, dal etc are on very high side. Who can eat 300 gm vegetables per head, and a family of 3 units eat 90 eggs, 2.5 kg fish and 3.5 kg meat In addition to 27 kg of veg. These are usual tactics to get more from Govt.
    Don't bleed the Govt to such an extent that next generation don't get Govt jobs. Beside it leads always to inflation and again wud demand for more. Pl be realistic.

  • very bad calculations as school fees,books stationary ,mobile bills,electricity bills , medicine bills, tea, and other etables such as masalas are not included. and some included are in insufficient quantity( such as milk should be 36 ltr insted of 18 ltr ) vegetable costs are also very high.