1. Minimum Food acquirements calculated on the basis of a net intake of 2700 calories per consumption unit.
2. Minimum clothing requirement estimated at a per capita consumption of 18 yards per annum.
3. Minimum housing requirement of 400 sq. feet per family at the rent charged by government for similar accommodation under any subsidized Industrial Housing Scheme for low-income groups.
4. Fuel, lighting and other requirements estimated to constitute 25 percent of the minimum wage.

In estimating the above basic needs for determination of the minimum wage, the standard working class family shall be taken to consist of 3 consumption units (husband or wife as the case may be and two children) for one earner, the earnings of women and children being disregarded."

The Need Based Minimum Wages will thus be 50% more than the total cost of food, lighting and housing, when we add the 25% as decided in the Raptakos Brett case.

The only question that remains is what the several ingredients (of food, clothing and housing) of Need Based Minimum Wage will work out to, in money terms, in different parts and places in the country. Of these, the most difficult is in regard to food, as the composition of the diet is a matter of dispute, particularly as to whether it is acceptable in terms of nutritional requirements or affordable in financial terms. In the kind of dispute, some tend to forget, rather conveniently, that article 47 of the Constitution of India mandates that the state shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties. Affordability in financial terms also comes up as an argument, among the elite and the ruling classes, only when the satisfaction of the basic needs of the poor and vulnerable is the issue!

It may be rewarding to analyze the exercise undertaken by various wage boards, pay commissions, committees and so on in quantifying, in money terms, what the Need Based Minimum wage will be the basis of a demand, it may be expedient to relate this demand to the minimum wage that a central government employee, particularly in the Railways and Postal services, who incidentally between them will account for half the number of employees of Central Government, do serve in different parts of the country in all states, in cities, towns and villages, in the plains and in the mountains and so on. Even keeping out of account, the elements of HRA and CCA which are urban-related, the minimum basic pay current dearness allowance of a Central Government employee works out to over RS. 2000 per month; and if we divide it by 26, as is normally done, the daily wage comes to about Rs. 80 per day. The position in respect of State Governments’ employees at the lowest level is not likely to be very different.

The more important thing than determining the daily rate (and its concomitant of adjustment periodically for increases in cost of living) is the availability of work for wages. Otherwise, the demand for a ‘just’ minimum wage becomes meaningless. About 250 days of employment in a year or 20 days in a month will have to be ensured. In fact, assured employment opportunities is the surest way not merely to ensure payment of minimum wages but also its steady improvement over time in real terms the economic system and the planning process will have to be geared up for ensuring this employment, particularly in the rural areas, as that alone will avoid the influx into the cities, apart from other advantages relating to avoidance of child labour, increase in school enrolment making universal compulsory elementary education feasible, and all other factors, such as health and nutrition, that go to improvement the Human Development Index.

CALCULATIONS REGARDING MINIMUM WAGES PER DAY FOR AGRICULTURAL WORKERS

The current figure of poverty line (food of 2,400 calories in rural area) is Rs. 11,600 p.a. per capita, It is now being revised. A worker’s family consists of 3 consumption units. Therefore the breadwinner has to earn Rs. 11,600 x 3 = 34800/- to avoid hunger. This is to avoid falling below the poverty line. If we accept the Indian labour Conference norms as approved by the Supreme Court (In workmen Vs Raptakos Brett & Co. Ltd. And Standard Vacuum Refining Vs the workmen) we have to add cost of cloth of 72 yd.(say @ Rs. 10 per yd.), 20% for fuel, lighting and miscellaneous items and 25% on children’s education, medicare, marriage, old age etc. The figure would then be Rs. 51,180/= p.a. On this basis, the figures of minimum wage per day on various assumptions of number of days of employment are given in Col. (3) below. Figures at Col. 3 are rather high and might be material for derision by the middle class intelligentsia. On this basis on various assumptions of number of days of work p.a., the minimum rates per day would be as follows:

(1) (2) (3)

No. of days of work minimum wage minimum wage per day per year per day (ILO Standard &

S.C. Judgement)

280 Rs. 124.28 Rs. 182.78

240 Rs 145.00 Rs. 213.25

200 Rs. 174.00 Rs. 255.90

180 Rs. 193.33 Rs. 284.33