How the 7th Pay Commission fixed the minimum Pay of Rs.18000 ?

November 26, 2015

7th Pay Commission calculated & fixed the minimum pay of Rs. 18000/- as per the 15th Indian Labor Conference (ILC) Norms, refer the table below :

Calculation of Minimum Pay as on 01.01.2016 by the Commission
		Per day PCU	Unit	Per month 3 PCU	Unit	Price/ Unit	Expenses
1	Rice/Wheat	475	gm	42.75	kg	25.93	1108.3
2	Dal(Toor/Urad/Moong)	80	gm	7.2	kg	97.84	704.44
3	Raw Vegetables	100	gm	9	kg	58.48	526.28
4	Green Vegetables	125	gm	11.25	kg	38.12	428.85
5	Other Vegetables	75	gm	6.75	kg	32.8	221.42
6	Fruits	120	gm	10.8	kg	64.16	692.93
7	Milk	200	ml	18	litre	37.74	679.26
8	Sugar/Jaggery	56	gm	5.04	kg	37.4	188.48
9	Edible Oil	40	gm	3.6	kg	114.02	410.46
10	Fish			2.5	kg	268.38	670.95
11	Meat			5	kg	400.9	2004.5
12	Egg			90	no.	4.27	383.98
13	Detergents etc			Rs/month		291.31	291.31
14	Clothing			5.5		164.88	906.83
15	Total (1-14)						9217.99
16	Fuel, Electricity, Water Charges						2304.50
17	Total-(15) divided by 0.8						11522.49
18	Marriage, Recreation, Festivals, etc.						2033.4
19	Total-(17) divided by 0.85						13555.87
20	Provide for Skill by adding 25% to (19)						3388.97
21	Sum (19+20)						16944.84
22	Housing @						524.07
23	Total-Divide no.21 by 0.97						17468.91
24	Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016						524.07
25	Final Minimum Pay as on 01.01.2016 (23+24)						17992.98
26	Rounding off						18000

Pay Commission Approach in the past

Approach of the Commission
1st Pay Commission	Gave its recommendations in 1948, pre dated the same
2nd Pay Commission	Make an initial assessment using the ILC norms. However, it moderated the minimum pay so calculated in line with the then prevailing per capita income
3rd Pay Commission	Adopted a modified version of the norms to calculate the minimum pay
4th Pay Commission	Estimated the minimum pay by applying the growth of total emoluments index on the minimum pay estimated by the III CPC
5th Pay Commission	Estimated the minimum pay through the ‘Constant Relative Income Approach’
6th Pay Commission	adopted the 15th ILC norms to arrive at a base figure, to which was added additional 25 percent for various additional items plus the skill factor. The Commission has thus noted that directly or indirectly, the ILC norms have always been at the core of the minimum pay calculations made by the previous Pay Commissions. The Commission is also of the view that the ILC norms, along with other supplements (the entire set of seven components), are the best approach to estimating the minimum pay as it is a need-based wage calculation that directly costs the requirements, normatively prescribed to ensure a healthy and a dignified standard of living.

jaikishan ch November 28, 2015 At 9:15 PM

mathur and other members of the 7th pay commission who prepared report dont have any family responsibilities either they are bachelors or vagabounds, literate fools what the pay commission they recommend is nothing but a piece of shit. they dont know how middile class people”s struggle in there day to day life, they just care about BABUS and these substandard political party NDA{BJP etc} who on the name of HINDUTWA destroy the lifes of dalits and other downtrodden people by getting corporated central government organisation by avoiding due reservation post which is suppose to be filled by reserved caste dalits. what we can expect by these rulers who are dominated specially by high caste people, bureacrate and others like AMBANIS, BIRLA, TATA etc last but not least there own politicians who are multimillionairs. so my dear central government employees if u people have any shame left in you never allow such political party to rule us in future and this is my prediction too that these is the last time that NDA government came into power.

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