Question: Compute the index of real wages from the following data using 1983 as base year.
Year: 1980 1981 1982 1983 1984 1985
Average Monthly Wages (Rs.): 120 132 143 150 171 200
Price Index: 100 120 130 150 190 200
Solution: Computation of Real wage indices (Base 1983)
| Year | Wages (Rs.) | Price Index | Real Wages | Real wages Index (Base = 1983) |
| 1980 | 120 | 100 | (120×100)/100=120 | 120 |
| 1981 | 132 | 120 | (130×104)/120=110 | 110 |
| 1982 | 143 | 130 | (143×115)/130=110 | 110 |
| 1983 | 150 | 150 | (150×100)/150=100 | 100 |
| 1984 | 171 | 190 | (171×100)/190=90 | 90 |
| 1985 | 200 | 200 | (200×100)/200=100 | 100 |