Nearly a century ago, management scholar Elton Mayo, whose Hawthorne studies transformed thinking on industrial relations, argued that “the human problem is the central problem of industry.” That insight remains as relevant today as India embarks on its most ambitious overhaul of labour laws in decades. India’s new Labour Codes seek to modernise labour regulation through simplified compliance, clearer wage definitions, greater formalisation of work, and stronger provisions for safety and social security. By consolidating 29 central labour laws into four codes, introducing a national floor wage, mandating appointment letters, extending social security to gig and platform workers, and streamlining compliance processes, they create a more coherent framework for employers and workers alike. Illustration: Pariplab Chakraborty.Yet one critical question remains unanswered: will workers earn enough not merely to survive, but to live with dignity? The reforms therefore provide an opportunity to shift the conversation from minimum wages to living wages – a benchmark that reflects the actual cost of a decent standard of living.So how much does it really cost for a family to live with basic dignity in India today? Answering this requires a benchmark that goes beyond arbitrary wage floors and outdated poverty lines. The estimates discussed here rely on the Anker Methodology, widely regarded as the gold standard for calculating living wages worldwide. Used by governments, global brands, social auditors, and multilateral agencies, the Anker approach combines normative standards with empirical data to determine the minimum income required for a decent standard of living – covering adequate food, healthy housing, utilities, education, healthcare, transportation, clothing, and a small provision for unforeseen events.When applied to three of India’s southern industrial states, the results reveal a consistent and troubling pattern. The cost of a decent living for a family of four is far higher than what most workers currently earn. In Tamil Nadu, the estimated average living wage in rural areas is Rs 15,251, whereas the figure is Rs 18,451 for non-metropolitan urban areas, and goes up to Rs 21,753 for the metropolitan areas of Chennai, Coimbatore and Madurai. The Telangana estimates are slightly higher at Rs. 16,930 for rural, Rs. 19540 for non-metropolitan urban, and Rs. 24,890 for the Hyderabad metropolitan area. For Karnataka, the figures are Rs. 16,528, Rs. 21,896 and Rs. 25,246 for rural, non-metropolitan urban and Bengaluru metropolitan areas, respectively. These estimates, calculated for September 2025, draw on data from the National Sample Survey’s Household Consumption Expenditure Survey (2022–23) and the Periodic Labour Force Survey (2023–24).Also read: Do the New Industrial Relations Rules Make Strikes Impossible?The gap between prevailing wages and living wages is striking. Inflation-adjusted casual labour earnings are 8–9% below living wage estimates in Tamil Nadu, 30–35% lower in Karnataka, and 20–29% lower in Telangana. Minimum wages also fall well short. Living wages exceed notified minimum wages for unskilled workers by 11% in rural Tamil Nadu and 33% in its urban areas; by 17% and 47% in Karnataka; and by 60% and 36% in Telangana. In metropolitan regions, the gap is even larger – 56% in Tamil Nadu, 61% in Karnataka and 95% in Telangana.The minimum in most of the states in India is universally acknowledged to be insufficient and inadequate for decent living. The gap between minimum wages and living wages highlights a deeper structural issue: India’s minimum wage system has historically aimed to provide a basic safety net rather than to fully match the income needed for a dignified standard of living.Also read: Do the New Rules Weaken Trade Union Autonomy?Further, minimum wages are fragmented across skill categories, zones, and sectors, and remain low partly because they have historically been shaped by concerns around industry costs rather than household needs. Their revision cycles are irregular, enforcement is weak, and large parts of the workforce remain outside effective coverage. As a result, even full compliance with minimum wage laws may leave many workers unable to meet basic household needs.This makes the moment of India’s new Labour Codes especially consequential. The Codes promise simplification, formalisation, and a national floor wage – a long overdue step. But unless the wage framework itself is rethought, the Codes risk modernising the machinery of labour regulation while leaving the core problem of wage inadequacy untouched. As states operationalise the Codes, the real opportunity lies in aligning minimum wages more closely with credible living wage benchmarks, using transparent, evidence-based methods.Nidhi Kaicker is an associate professor of management at Dr B.R. Ambedkar University Delhi.This piece was first published on The India Cable – a premium newsletter from The Wire – and has been updated and republished here. To subscribe to The India Cable, click here.