FIXING NOTIONAL INCOME FOR HOUSEWIVES: A STEP TOWARDS SOCIAL SOLIDARITY

 

Source-legalbutton.com

After marriage, a wife’s duty according to the patriarchal and social norms is to maintain and sustain the family; so, the work that she does for her family is something very natural and therefore need not be compensated for.

According to the 2011 census data, almost 159.85 million women in India are housewives^[1]. Normally, on the endless primary issue of earning a living and having an occupation, we consider people as employed only if they work in factories, agriculture, mining, manufacturing, hotels and restaurants, trade, real estate, construction and other such activities. In such discussions, seldom is any  reference made to one of the largest working group of all i.e. the housewives. This is because a housewife is considered to have no occupation at all.

We always tend to assign value to money in economics, and often ignore services with no price tag associated to them, though they might be carried out with utmost diligence and affection because we consider them unworthy. Housewives come under this category.

A three-judge bench of the Supreme Court in their recent judgement was of the opinion that this notion should change:

“…the conception that housemakers do not ‘work’ or that they do not add economic value to the household is a problematic idea that has persisted for many years and must be overcome.”^[2]

This insightful idea was conveyed by the Supreme Court in the case of Kirti and Anr, Etc. vs. Oriental Insurance Co. Ltd, 2021.

Let us understand the judgment in brief. This article seeks to focus only on the facts relating to the calculation of the notional income of a housewife.

KIRTI AND ANR, ETC. VS. ORIENTAL INSURANCE CO. LTD^[3]

Source- Hauterfly.com 

This case was heard by the Supreme Court as an appeal from the High Court of Delhi, which had reduced the motor vehicle accident claim form 40 lakhs (earlier awarded by the Motor Accidents Claim Tribunal) to 22 lakhs.

The case was filed by the dependents (claimants) of a deceased couple i.e. their two minor daughters and their grandfather after a bike accident. After examining the evidence and the witnesses, the tribunal awarded a total of Rs. 40.71 lakhs to the claimant. It was reduced to 20 lakhs through an appeal in the Delhi High Court on the ground that there was no documentary evidence of the husband’s employment (as he was a non-permanent employee) in a school and as the wife was non-working. Later again in another appeal in the Supreme Court, the compensation was increased to 33 lakhs. 

Focusing on the compensation on part of the wife’s death, the honourable judges Surya Kant J. and N.V. Ramana J. brought forth a separate opinion.

Justice Ramana said that often there are 2 categories which need to be determined while calculating the notional income of the victim. One of those categories is the income of a non-earning victim such as a child, a student or a housemaker. Calculating such incomes becomes very difficult as the services rendered by them cannot be quantified.

Emphasizing this, he stated that an attempt has been made to determine the compensation for deceased housewives based on the services rendered in the house.

Further, he opined,

“The sheer amount of time and effort that is dedicated to household work by individuals, who are more likely to be women than men, is not surprising when one considers the plethora of activities a housemaker undertakes. A housemaker often prepares food for the entire family, manages the procurement of groceries and other household shopping needs, cleans and manages the house and its surroundings, undertakes decoration, repairs and maintenance work, looks after the needs of the children and any aged member of the household, manages budgets and so much more. In rural households, they often also assist in the sowing, harvesting and transplanting activities in the field, apart from tending. However, despite all the above, the conception that housemakers do not “work” or that they do not add economic value to the household is a problematic idea that has persisted for many years and must be overcome.”^[4]

Though the contribution made by a mother/wife towards her family cannot be assessed in terms of money, for the purpose of ascertaining compensation, some monetary estimates have to be made by the courts. The term services should be given a broader meaning to include personal care and love, which she gives to her children. The loss of a mother cannot be compensated by the love and affection of any close relative.

Observing this, the honourable judges concluded that –

1.     Pecuniary compensation with respect to a homemaker is mandatory.

2.     Considering the number of women engaged in such activities, it becomes necessary to fix their notional income as recognition of their work and sacrifices.

3.     The notional income can differ depending on the facts and circumstances of the case.

4.     Various methods can be applied while calculating compensation, depending on the case.

 

FUTURE PROSPECTIVES

A report called ‘Time Use in India’ (2019) released by the Ministry of Statistics and Programme Implementation suggested that women spend 299 minutes a day in household work, in comparison to 97 minutes spent by men. This indicates the existence of a plethora of activities which a woman undertakes.^[5]

This issue of recognizing the value of all the domestic household services provided by the women has been prevalent all over the world, owing to which various international conventions have also incorporated rules enabling their recognition. The United Nations Committee on the Elimination of Discrimination against Women adopted a general recommendation titled ‘Measurement and Quantification of unremunerated domestic activities of women and their recognition in the Gross National Product.’ This recommendation has been further been reiterated in Article 11 of the Convention on Elimination of All Forms of Discrimination against Women.^[6]

It can truly be said that fixing a notional income for a housewife, who is engaged in such activities either by choice or due to social norms, will give her a multi-faceted recognition. It will also serve as an official acknowledgement that she also largely contributes to the economic condition of the family and in turn to the economy of the country.

Recognizing the hard labour of a woman in a court of law is definitely a step towards achieving equality, which is the fundamental goal of our Constitution and will also ensure her dignity among all individuals.

Looking at this from an economic perspective, by giving economic value to household work, the Government will be able to arrive at a more closely accurate GDP, which will thus provide a clear picture of the prevalent economic issues and help fill in the remaining gaps.

Apart from this, in various rural areas, women also contribute to the informal sector to a large extent. Agriculture is the largest employer of women in the country where much of the work is carried out by them in their family farms. Despite all of this, women are not paid in proportion to men and are also barred entitlement to inherit property. Adding economic value to their work may also help them secure their basic right to property.

Moreover, the Government will also be able to frame better social protection policies like insurance and pensions for this segment of society. Beyond economic gains, domestic labour also keeps a house running and makes it possible for all the genders to go outside and work to earn a living.

Commonly, the entire burden of unpaid work goes directly and disproportionately to women as they are expected to have an inbuilt mechanism of doing household chores. In addition to this, some women also work outside to support their families. In such situations, women tend to suffer from ‘time poverty’^[7] which is said to be an acute time pressure where it is difficult to figure out or have the freedom to choose how to allocate time to each work, leaving little or no room for leisure. This shows that recognition of labour of women  is essential, especially to provide them with equal social status and give them due respect for their sacrifices.

Along with this, we should also try and focus on policies and laws which will help reduce the burden of unpaid labour on women, giving them an equal footing in the outside world.

BY

LAWVASTUTAH

 

 

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^[1] Conception That House Makers Do Not "Work" Or That They Do Not Add Economic Value To The Household Is A Problematic Idea: SC In Motor Vehicle Compensation Case, Live Law (05/01/2021), available at  https://www.livelaw.in/top-stories/supreme-court-homemakers-house-hold-work-economic-value-motor-vehicles-compensation-167981, last seen on 21/01/2021.

^[2] Kirti and Anr, Etc. v. Oriental Insurance Co. Ltd (2021), CIVIL APPEAL NOS.19-20 of 2021

^[3] Ibid.

^[4] Supra (2)

^[5] Zeeshan Shaikh, How Indians spend time: Women do the unpaid work; lots of socialising; almost zero volunteering, The Indian Express (05/10/2020), available at https://indianexpress.com/article/explained/how-indians-spend-their-time-women-do-the-unpaid-work-lots-of-socialising-almost-no-volunteering-6647147/, last seen on 24/01/2021.

^[6] Supra (2)

^[7] Tish Sanghera, How unpaid work keeps India’s women poor and unequal, India Spend (25/03/2019), available at https://www.indiaspend.com/how-unpaid-work-keeps-indias-women-poor-and-unequal/, last seen on 27/01/2021.