November 25, 2021 3:00:48 am
The government has revised the base year for Wage Rate Index (WRI) to 2016 which will replace the old series with base of 1963-65. The revised base will be more representative and play a critical role in determining the minimum wages and national floor wages along with other parameters.
Labour Minister Bhupender Yadav said, “The new series on WRI has been compiled on half-year basis as against the annual in the existing series. The new WRI series would be point-to-point, half-yearly, with reference date as January 1 and July 1 of every year.”
The New WRI basket (2016=100) has enhanced the scope and coverage in terms of occupations and industries as compared to old WRI series (1963-65=100). Of the 37 industries covered in the new series, 16 new ones — including textile garments, footwear and petroleum — have been added to the new basket, said DPS Negi, Principal Advisor, Labour & Employment Ministry.
Manufacturing, mining and plantation sectors have weights (estimated total wage bill) of 82.57 per cent, 11.23 per cent and 6.20 per cent, respectively, in the new WRI series as against weights (estimated employment) of 48.78 per cent, 17.01 per cent and 34.21 per cent in the old series.
The top five industries — motor vehicles (11.49 per cent), coal mines (9.53 per cent), textile garments (9.32 per cent), iron & steel (9.30 per cent), and cotton textiles (6.55 per cent) — together account for 46 per cent of the total weight.
The field work for collection of current wage data was conducted from January to June. The new series presents wage rate indices, average daily absolute wage rates and real wages at 2001 prices by occupation, industry and all-India level from July 2O16 to July 2020. The overall average daily absolute wage rate for all the 37 industries combined together stood at Rs 585.5 in the second half of 2020 as compared to Rs 576.1 in the first half of the year. —FE
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