To estimate the minimum pay in the government, the VII Central Pay Commission
th (CPC) used the norms set by the 15 Indian Labor Conference (ILC) in 1957 to
determine the need-based minimum wage for a single industrial worker. The
norms set by the ILC are as below:
A need-based minimum wage for a single worker should cover all the
needs of a worker’s family. The normative family is taken to consist of a
spouse and two children below the age of 14. With the husband assigned
1 unit, wife, 0.8 unit and two children, 0.6 units each, the minimum wage
needs to address 3 consumption units.
The food requirement per consumption unit is shown in the Annexure to
this chapter. The specifications were derived from the recommendations
of Dr. Wallace Aykroyd, the noted nutritionist, which stated that an
average Indian adult engaged in moderate activity should, on a daily
basis, consume 2,700 calories comprising 65 grams of protein and
around 45-60 grams of fat. Dr Aykroyd had further 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 intake.
The clothing requirements should be based on per capita consumption of
18 yards per annum, which gives 72 yards per annum (5.5 meters per
th month) for the average worker’s family. The 15 ILC also specified the
associated consumption of detergents, which can be seen in the
For housing, the rent corresponding to the minimum area provided under
th the government’s industrial housing schemes is to be taken. The 15 ILC
kept it at 7.5 percent of the total minimum wage.
Fuel, lighting and other items of expenditure should constitute an
additional 20 percent of the total minimum wage.
The Central Pay Commission considered additional components of expenditure
to cover for children’s education, medical treatment, recreation, festivals and
ceremonies. This followed from the Supreme Court’s ruling in the Raptakos
Brett Vs Workmen case of 1991 for determination of minimum wage of an
industrial worker. The Supreme Court had prescribed this amount at 25
percent of the total minimum wage calculated from the first five components.
However, in considering this additional component the VI CPC took note of the
educational allowance and medical facilities being provided by the
After considering all relevant factors the Commission is of the view that the
minimum pay in government recommended at Rs.18000/- per month,
w.e.f. 01.01.2016, is fair and reasonable and one which, along with other
allowances and facilities, would ensure a decent standard of living for the
lowest ranked employee in the Central Government
Thus we shall also follow the principles of VII pay commission in fixing
st minimum salary, of course to be calculated as on 1 November. 2017 after
adding the cushion discounted by the pay commission to the Government
employees for the “ STATUS” they enjoyed and also after adding the additional
cushion for the RISK, RESPONSIBILITY, TRANSFERABILITY AND
ACCOUNTABILITY the bank officers are subjected to, in the same ratio fixed
between the employees and officers, deleting the very concept of special pay
caused grave injustice to the retired/retiring officers who laid strong edifice to
the ever strong Indian banking sector. We have to take into account the inflation
projected for Nov,17.
We shall also uphold views expressed in offering the running scale without
stagnation and also in scrapping the NPS.
th (Paragraphs in italics are verbatim reproduced from 7 pay commission
With this background let us now go into our Charter of demands.