Rajasthan High Court Mandates Overhaul of Daily-Wage Calculation System
The Rajasthan High Court has issued a landmark directive, ordering the Union Labour Ministry and the Rajasthan Labour Department to revise their notifications and circulars concerning the calculation of minimum wages for daily-wage workers. The court has mandated a shift from the current 26-day basis to a 30-day month, a move aimed at better reflecting the economic realities faced by these labourers.
Origins in a Motor Accident Claim Case
This significant judicial intervention stemmed from a petition filed by a labourer challenging an award from the Motor Accident Claims Tribunal (MACT). The MACT order, dated February 15, 2024, had granted compensation of Rs 2.8 lakh to the claimant, payable by National Insurance Company Ltd, for injuries sustained in a motorcycle accident on August 27, 2020. The accident resulted in a 13% permanent disability for the individual.
During the tribunal's proceedings, the claimant's monthly income was assessed based on a 26-working-day calculation, treating weekly rest days as paid holidays under existing wage notifications. This methodology became the central point of contention in the subsequent high court appeal.
Court's Rationale and Observations
A single bench of Justice Anoop Dhand, in an order dated February 4 (uploaded on February 9), critically examined the 26-day norm. The court noted that this standard assumes a six-day work week with one paid weekly off. However, Justice Dhand observed that daily-wage workers typically do not receive payment for rest days and often work continuously to earn their livelihoods.
The bench emphasized that such workers, who usually live hand-to-mouth, suffer income loss when they take weekly holidays, as wages are paid only for days actually worked. This discrepancy between legal assumptions and ground realities formed the core of the court's reasoning.
Modification of the MACT Award
As a result of its findings, the high court modified the MACT award, granting the claimant an additional compensation of approximately Rs 33,000. The remaining terms and conditions of the original award were kept unchanged. The court directed the insurance company to deposit this enhanced amount into the claimant's savings bank account within two months, along with interest at 6% per annum from the date of the claim petition's filing.
Arguments Presented During Proceedings
During the arguments, the petitioner's counsel submitted that the claimant was a beldar (mason) but had been incorrectly categorized as an unskilled labourer by the tribunal. It was further argued that the minimum wages were inaccurately assessed on a 26-day basis instead of a full 30-day month, which would more accurately represent potential earnings.
The insurer, National Insurance Company Ltd, opposed the plea, contending that a beldar falls under the unskilled category and that the tribunal had awarded appropriate compensation. Despite this opposition, the court found merit in the petitioner's arguments regarding wage calculation.
Broader Implications for Labour Laws
The court also referenced existing labour laws that mandate weekly offs and limits on working hours, acknowledging that no worker can be forced to work seven consecutive days. However, it stressed that wage calculations must align with the economic reality of daily-wage earners, who often cannot afford unpaid rest days.
This directive is expected to have far-reaching consequences for wage policies and compensation assessments across Rajasthan and potentially beyond, ensuring that daily-wage workers' incomes are computed in a manner that truly reflects their working patterns and financial needs.
