Wage Rate Index
The Ministry of Labor recently released a new set of wage rate index (WRI) whose base year has been set as the year 2016.
The labour Bureau maintains as well as compiles the wage rate index. WRI’s new series with base 2016 replace the previous series with base 1963- 1965.
Reasons for revision of base year
The central government regularly reviews the base year of key economic indicators to reflect changes in the economy and to understand the wage structure of workers. This time, the WRI Base Year has been revised based on recommendations from the International Labor Organization, the National Statistics Commission etc. to make the index more representative as well as to improve coverage.
Significance of the new WRI series
The new scope of WRI has expanded its scope in terms of number of industries, occupations between selected industries, sample size, industry weighting, and so on. The WRI revision will play an important role in the issuance of minimum and national minimum wages, including other parameters that will soon be determined by a group of experts.
About the new WRI series
The new WRI series will be created point-to-point semi-annually, such as January 1st and July 1st each year. The new WRI series weighting chart is based on the results of the 7th round of expert wage surveys. A total of 37 industries were covered by the new WRI basket, in contrast to the 21 industries which were covered in the previous series.
About new sectors included
The 37 sectors selected in the new series are divided into 3 sectors in the plantation sector, 4 sectors in the mining sector and 30 sectors in the manufacturing sector. The previous series had 4 mining, 14 manufacturing and 3 plantations.