What the revision of a 30-year-old inflation index means for rural wages

Shifting the base year for two critical inflation indices is important as they determine minimum wages for agriculture and rural workers, and could also affect payments under the MGNREGA jobs programm

As the day comes to an end, Nanhe Ram (50), waiting outside his contractor's cabin, laments that he has been receiving the same ‘dihadi’ (daily wage) for the past four years.

 

“I hope the contractor doesn't cut my wages this month," he worries. "Last month, due to some problems with the contractor, I received a lesser amount. There are hardly any wage revisions here and whatever we get is barely enough to make our ends meet."

 

In India, both the central and state governments fix minimum wages for a number of occupations known as scheduled employment. In addition, these wages