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Need for living wages in India: Case studies of agricultural workers in rural Madhya Pradesh

Published online by Cambridge University Press:  29 August 2023

Nidhi Kaicker Open the ORCID record for Nidhi Kaicker [Opens in a new window]  and
Kuriakose Mamkoottam
Nidhi Kaicker*
Affiliation:
School of Business, Public Policy and Social Entrepreneurship, Dr BR Ambedkar University Delhi, New Delhi, India
Kuriakose Mamkoottam
Affiliation:
Faculty of Management Studies, University of Delhi, New Delhi, India
*
Corresponding author: Nidhi Kaicker; Email: nidhikaicker@gmail.com
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Abstract

The present study discusses the current wage situation in India and the need for living wages as workers and employees grapple with the cost of living crisis. A case study of two districts of Madhya Pradesh (MP) state is presented to demonstrate how the living wage benchmarks based on the Anker Methodology compare with existing minimum wage fixations and other development indicators. The living wage benchmarking is based on field surveys conducted in Ratlam and Chhindwara districts in October–December 2021, and a rigorous analysis of nationally representative consumption and expenditure surveys conducted by the National Sample Survey Organisation and the Centre for Monitoring Indian Economy. Our living wage estimates are 1.8 times the minimum wages for agricultural labourers and 43% more than those earned by non-agricultural unskilled labourers. Moreover, the actual wages reported are less than half of the estimated living wages, indicating that the current incomes and wages for workers and farmers of rural MP are far from adequate to lead a decent life.

Keywords

consumptioncost of livingliving wagesminimum wagesD12E24E31
Type
Original Article
Information
The Economic and Labour Relations Review , Volume 34 , Issue 3 , September 2023 , pp. 491 - 503
Copyright
© The Author(s), 2023. Published by Cambridge University Press on behalf of UNSW Canberra

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