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What the revision of 3-decade-old inflation index may mean for rural wages

What the revision of a three-decade-old inflation index may mean for rural wages

Rural Inflation
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The recommendations were not implemented as the finance ministry expressed concerns over the potential fiscal implications of adopting CPI-R for wage indexation. | File Image

Shiva Rajora New Delhi

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As the day draws to a close, Nanhe Ram (50), who is waiting outside his contractor’s cabin, laments that he has been receiving the same dihaadi (daily wage) for the past four years. 
 
“I hope the contractor doesn’t deduct my wages this month,” he says. “Last month, I got less than what was due. Wages are hardly ever revised, and I can barely make ends meet with what I earn.”
 
In India, both the central and state governments fix the minimum wage for a number of occupations identified as scheduled employment. These wages are revised periodically in line with inflation.