Supreme Court Recognises Homemakers as Nation Builders and Fixes Rs 30000 Per Month as Minimum Notional Income for Motor Accident Compensation | Current Affairs

The Supreme Court on June 11, 2026 recognised homemakers as "nation builders" and held that the loss of domestic-care services must be treated as a distinct head of compensation, fixing a notional monthly income of Rs 30,000 for assessing such loss in motor accident cases.

A bench of Justices Sanjay Karol and N. Kotiswar Singh passed the order while granting compensation to a family for the loss of their homemaker in a road accident. The court ruled that Rs 30,000 per month shall be treated as the basic minimum monthly income for calculating compensation towards loss of domestic care in all cases where a homemaker has no direct income. The compensation in this specific case was enhanced from Rs 8.43 lakh to Rs 62.78 lakh.

Referring to India's Time Use Survey, the bench noted that women spend over seven hours a day on unpaid domestic tasks and contribute an estimated 15 to 17 per cent of India's GDP through unpaid care work.

Why in News: This landmark ruling redefines the legal and economic value of unpaid domestic work. Questions can be asked on the bench, the Rs 30,000 figure, the new compensation head "Loss of Domestic Care," the Time Use Survey findings, and the Motor Vehicles Act.

Key Points to Remember:

SC judgment date: June 11, 2026
Bench: Justice Sanjay Karol and Justice N. Kotiswar Singh
Homemakers declared "Nation Builders" by Supreme Court
Notional income fixed: Rs 30,000 per month (minimum) for MACT compensation
New compensation head: "Loss of Domestic Care"
Compensation enhanced in this case: Rs 8.43 lakh to Rs 62.78 lakh
Women spend 7+ hours/day on unpaid work; contribute 15 to 17% of India's GDP
Earlier practice: Notional income based on minimum wages (now replaced)
MACT full form: Motor Accidents Claims Tribunal
Applicable law: Motor Vehicles Act 1988

Related Static GK:

Motor Vehicles Act: 1988; significantly amended in 2019
MACT: adjudicates compensation for road accident victims
India's Time Use Survey: conducted by MoSPI (Ministry of Statistics and Programme Implementation)
GDP does not account for unpaid household work (called the "care economy gap")
SC established: January 28, 1950; CJI (2026): Justice Surya Kant