• The modified BG Prasad and Kuppuswamy scales commonly used for SES classification require updates over time to reflect economic changes accurately.

• The modified BG Prasad scale utilizes per capita monthly income, adjusted by the Consumer Price Index (CPI) for Industrial Workers (IW), with revisions made over time to accommodate changes in CPI and inflation rates.

• The latest update for January 2024 involves multiplying the current CPI (138.9) by various linkage factors and the base index to obtain new income values:

1. New Income values = Correction factor × Old income value of 1961

2. Correction factor = (LF for the base year 1982 × LF for the base year 2001 × LF for the base year 2016 × Current CPI [IW]) ÷ Base Index in 2016

• The modified Kuppuswamy scale evaluates SES using the head of household's education, occupation, and income,  with the income needing frequent updates to match inflation rates.

• For January 2024, the inflation factor is calculated using CPI data, with adjustments made to income values accordingly.

1. Inflation factor = ([b − a] ×100) ÷ a

b = CPI of the current year

a = CPI of the previous year

• Overall, both scales provide a framework for assessing SES, with adjustments made to reflect economic changes and ensure accuracy in classification.

Click here to read more.