Friday, June 30, 2017

Are minimum wages sufficient?




This notice here shows the data about the minimum wages and skill based categories in India (minimum wages figures are in INR). The working hours are mentioned but these could extend from 11 hours to 12 hours a day.






































A Case Study: how practical these figures are:
This table shows the monthly expenses of last seven months of a person keeping a low economic profile in Gurugram (Haryana, India). These expenses include costs of rent, maintenance, electric and food. Rent is for a one room-set (or studio) apartment with a floor area of 220 sq. feet. Water is state-government provided. Lunches on weekdays are company provided.

Item Expense Month
House Rent 4500 Dec-2016
Maintenance 500 Dec-2016
Electric 200 Dec-2016
Food/Milk/Etc 2755 Dec-2016
Total 7955
House Rent 4500 Jan-2017
Maintenance 500 Jan-2017
Electric 200 Jan-2017
Food/Milk/Etc 3021 Jan-2017
Total 8221
House Rent 4500 Feb-2017
Maintenance 500 Feb-2017
Electric 200 Feb-2017
Food/Milk/Etc 3806 Feb-2017
Total 9006
House Rent 4500 Mar-2017
Maintenance 500 Mar-2017
Electric 200 Mar-2017
Food/Milk/Etc 4054 Mar-2017
Total 9254
House Rent 4500 Apr-2017
Maintenance 500 Apr-2017
Electric 200 Apr-2017
Food/Milk/Etc 3084 Apr-2017
Total 8284
House Rent 4500 May-2017
Maintenance 500 May-2017
Electric 200 May-2017
Food/Milk/Etc 3297 May-2017
Total 8497 May-2017
House Rent 4500 Jun-2017
Maintenance 500 Jun-2017
Electric 200 Jun-2017
Food/Milk/Etc 4712 Jun-2017
Total 9912 Jun-2017
Total 9051 Jul-2017
Total 7453 Aug-2017
Total 8541 Sep-2017
Total 9880 Oct-2017
Total 11678 Nov-2017

Clearly, if costs tend to increase monthly then living on the bare minimum is not possible.

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