7th Pay Commission: Why salaries of CG employees could increase by Rs 8,000

New Delhi, Nov 12: There is some good news expected on the 7th Pay Commission later this month.

The Union Cabinet is set to meet later this month and it would discuss the issue relating to the hiking of floor wage. If this decision comes through then the Central Government employee will get a pay hike of up to Rs 8,000. This would also be made applicable to all government school and university teachers.

The Code on Wages 2019 which is in the draft form as of now, will come into effect in the next four months. Currently, suggestions and objections are being sought.

The pay panel had recommended a basic minimum pay of Rs 18,000. If calculated on a 26-day working month, it would work out to Rs 692 per day.

Once the Code of Wages comes into effect the salaries may jump by 28 per cent.
According to the draft, the central advisory board will fix a statutory national floor wage. This, in fact, would be done for the first time and it would be the basis for the new, multiple minimum wages at both the Central and State levels.

The Code on wages 2019 provides a statutory national floor wage rate and there can be no minimum wages fixed below this by any employer. The draft would become final in four months and during this period there would be consultations held.

The floor wage would take into account an equivalent of three adult consumption units, which would include food, clothing and housing. The floor wage would be revised every five years by the Union Government by taking into consideration various factors.

The criteria states that the minimum wages should take into consideration a net intake of 2,700 calories per day consumption unit and 66 metres cloth per year per family apart from the House Rent which is 10 per cent, fuel, electricity, spending on children's education, recreation and medical needs. The expenditure on emergencies would stand at 25 per cent.

The national average minimum wage is Rs 4,628 a month. It may be recalled that on October 18, the Supreme Court had provisionally allowed the Delhi government to raise it to Rs 14,842.

CG employees have been demanding that their basic minimum pay be increased to Rs 26,000. The 7th Pay Commission had however recommended that the basic minimum pay would be at Rs 18,000.