Cost of living index number for industrial workers
\(I= \frac{ΣIW}{ΣW}
\)
\(=\frac{23144}{100}
= 231.44\)
Base year = 2012
There is (231.44 – 100 =) 131.44% increase in the cost of living expenditure in 2014 as compared to the base year 2012.
The average monthly salary of the workers in the year 2012 is ₹ 6,000.
∴ The average monthly salary in the current year 2014 to maintain same standard of living
\(= \frac{Current \,year’s \,( i.e. 2014) cost\, of \,living \,index \,number} {Base \,year’s \,(i.e. 2012) \,cost \,of \,living\, index \,number} × Average\,salary\, in the \,year \,2012\)
\(= \frac{231.44}{100 }× 6000
= ₹ 13886.40\)
