7th Pay Commission: Minimum Pay Likely To Go Up By 28 Per Cent For Central Government Employees

The Central government employees are likely to witness an increase in the basic pay by 28 per cent if the Centre's proposed new draft rules on 'Code on Wages 2019' gets operationalized in months to follow.

The Union Government's 'Code on Wages 2019' draft policy provides a ceiling for fixing the national floor wage rate or guidelines on the fixing minimum wages, below which no state agency or employer can fix the minimum wages.

The basic wage rate was fixed at Rs. 18,000 per month for all the union government employees as per the recommendations of the 7th Central Pay Commission in 2015. This implies, for a 26 day working month, it would work up to Rs. 692 a day.

The 7th Pay Commission's recommendation that provided for the 'basic wage rate' at Rs. 18,000 a month will form the criteria for the hiking the floor wage, as per the official sources in the labor ministry. The floor wage is also likely to be revised after every five years, as per sources.

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As per the draft rules proposed by the Centre for the 'Code of Wages 2019', the floor wage rate will take an account of three primary adult consumption units - food, clothing and housing besides other variables deemed appropriate by the union government from time to time.

The fixing of minimum wage rate should take into account a net intake of 2,700 calories a day (consumption unit) and 66 metres cloth per year a family in addition to the 10 per cent expenditure on House Rent involving fuel, electricity, spending on recreation, children's education, medical needs, etc, as per the wage draft policy criteria. Further, the expenses accounting for emergencies would stand at 25 per cent.

It would not be wrong to say that the Centre's proposed wage rate policy is an outcome of the Supreme Court's October 18 ruling that provisionally allowed the Delhi government to increase the minimum wage to Rs. 14,842 a month.

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