Supreme Court values loss of homemakers’ domestic care at ₹30,000 monthly in motor accident claims

Increasing compensation in a 25-year-old motor accident case, the Supreme Court said the work performed by homemakers forms the foundation of the country’s economy and deserves recognition on par with paid employment

The Supreme Court's recognition of "loss of domestic care" as compensable, valuing homemakers' labor at Rs 30,000 monthly, marks a significant shift. This acknowledges the substantial economic contribution of unpaid household work, estimated to be a significant portion of India's GDP, and highlights the persistent gender gap in domestic responsibilities.

India's Supreme Court has legally recognized the immense value of unpaid household labor. Homemakers are now considered nation builders. The court has assigned a notional monthly income of Rs 30,000 for compensation in motor accident cases. This landmark judgment acknowledges the vital role women play in shaping families and society. It provides a starting point for valuing their contributions.

Homemakers are nation builders Why Supreme Court valued domestic care at Rs

A Supreme Court bench of Justices Sanjay Karol and N K Singh said women were largely responsible for the preparation of human capital on which the dreams of being the world’s largest economy, among other things, rested. The bench said if the compensation was not paid within three months, the interest rate would increase to 9%, and six months later, it would go up to 12% per annum. It also listed 123 accident compensation claim cases, which were dealt with by a bench led by Justice Karol.

The Supreme Court has recognized the significant economic value of homemakers' daily contributions, mandating higher compensation for families in accident cases. A minimum of Rs 30,000 monthly is now the benchmark for a homemaker's work, acknowledging their crucial role in household functioning and child-rearing. This landmark ruling aims to rectify past underestimations and expedite justice for affected families.