Update of modified Kuppuswamy scale for the year 2024

Sir,

Socioeconomic status (SES) serves as a pivotal determinant influencing the health outcomes of individuals and families. This multifaceted indicator not only encapsulates an individual's occupational status and income but also encompasses their access to resources, education, and social support networks.¹ SES provides critical insights that help address disparities by allowing for the tailoring of development projects and government initiatives to meet the specific needs of diverse communities. This, in turn, promotes equitable growth and enhances access to quality education and healthcare. By leveraging socioeconomic data, policymakers can craft more inclusive economic and social policies, fostering a more just and balanced society.²

Introduced as a modification of the original Kuppuswamy scale which was originally formulated in the late 1970s, it considers factors such as education, occupation, and family income to classify households into different socioeconomic categories.³

The Kuppuswamy socioeconomic status (SES) scale is dynamic and is influenced by the Consumer Price Index (CPI), which measures changes in prices for goods and services that households typically consume.⁴ CPI figures are widely utilized to gauge inflation rates. The Labour Bureau, under the Government of India, releases three CPIs: CPI for Industrial Workers (CPI-IW) with a base year of 2001, CPI for Agricultural Laborers with a base year of 1986-87, and CPI for Rural Laborers with a base year of 1984-85. Among these, CPI-IW is the most commonly used and relevant for updating socioeconomic classifications because it reflects the spending patterns of an average working-class family. In this article, we will use both 2012 and 2016 as the base years for calculating the income level of families to determine their SES, as per the revisions by the Labour Bureau.^5,6

For calculation of the inflation rate is [(CPI of current year-CPI of last year) ÷ CPI of last year] ×100

For March 2024 the inflation rate is [(183.6-176.3) ÷ 176.3] ×100= 4.14

One of the primary strengths of the modified Kuppuswamy scale lies in its multidimensional approach to SES assessment. This holistic approach of incorporating variables such as education and occupation in addition to income acknowledges the complex interplay between various socioeconomic factors and provides a more nuanced picture of social and economic disparities. Despite its strengths, the modified Kuppuswamy scale is not without its shortcomings. Inflation exerts a profound influence on the purchasing power of the currency, thereby obfuscating the meaningful interpretation of income thresholds delineated by Kuppuswamy decades ago. As the value of the rupee fluctuates relative to the cost of goods and services it necessitates regular recalibration to maintain their relevance and accuracy in socioeconomic classification.

In light of these challenges, there is a pressing need to revisit and potentially revise the modified Kuppuswamy scale to ensure its continued utility and relevance in contemporary India. This could involve updating the CPI index base year to 2016 to better reflect the contemporary economic milieu. Furthermore, efforts should be made to enhance the accessibility and applicability of the modified Kuppuswamy scale across diverse populations and regions.

REFERENCES

1. 1. Dalvi T, Kalghatgi S. A 2023 update of Kuppuswamy Socioeconomic Status classification Scale for the Indian population. J Indian Assoc Public Health Dent. 2023;21:282-3.
2. 2. Shafiei S, Yazdani S, Jadidfard MP, Zafarmand A. Measurement components of socioeconomic status in health-related studies in Iran. BMC Research Notes. 2019;12(1).
3. 3. Radhakrishnan M, Nagaraja SB. Modified Kuppuswamy socioeconomic scale 2023: stratification and updates. International Journal of Community Medicine and Public Health. 2023;10(11):4415–8.
4. 4. Wani RT. Socioeconomic status scales-modified Kuppuswamy and Udai Pareekh’s scale updated for 2019. Journal of Family Medicine and Primary Care. 2019;8(6):1846.
5. 5. Consumer Price Index Numbers For Industrial Workers. Labour Bureau, Ministry of Labour and Employment, Government of India. Available from: https://labourbureau.gov.in/consumer-price-index-numbers-for-industrial-workers. Accessed on 24 April 2024.
6. 6. Majhi MM, Bhatnagar N. Updated B.G Prasad’s classification for the year 2021: Consideration for new base year 2016. J Family Med Prim Care. 2021;10:4318–9.