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.
7th Pay Commission: How Code of Wages will impact salaries of CG employees
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.
7th Pay Commission: Minimum Wage to jump 28 per cent as Code of Wages 2019 set to come in
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.