Livelihood Programme: Estimate Hours and Earnings First
Before joining an SHG livelihood activity, RSETI course or DDU-GKY training, estimate weekly hours, real earnings per hour and costs. Checklist and ₹ example.
In this article (10 sections)
- Three kinds of programmes, three different calculations
- Step 1: Count the real hours
- Step 2: Estimate monthly income and costs
- Step 3: Work out earnings per hour
- Worked example: two cows vs tailoring
- Step 4: Check the stretch months
- Step 5: Count the cost of getting started
- Step 6: Questions to ask before you sign up
- Lakhpati Didi as a yardstick
- Key takeaways
Before you join a livelihood programme, work out two numbers: how many hours a week it will really take (including travel, buying and selling), and what is left in hand each month after every cost and loan instalment. Divide the second by the first and you get earnings per hour, which you can compare with the local wage work or other options you have. Programmes such as SHG-linked livelihood activities under DAY-NRLM, RSETI self-employment courses and DDU-GKY placement-linked training can raise income, but the numbers differ widely by trade, season and market. Figures here are as of November 2026 and are illustrative; check details with your block office, SRLM staff or training centre.
Three kinds of programmes, three different calculations
| Programme type | What you get | What you put in | Main question to estimate |
|---|---|---|---|
| SHG livelihood activity (dairy, goatery, tailoring, food, shop) | Credit through the group, training, market support from the SRLM | Daily labour, own contribution, loan repayment | Net income per month vs hours |
| RSETI self-employment course | Free short residential training; follow-up support | Days away from home, then setting up a unit | Can I start the unit and how soon will it earn? |
| DDU-GKY placement-linked training | Skill training for rural youth, placement support | Months of training, possible migration | Salary vs city living costs and travel |
RSETI courses are free and residential, generally lasting from about a week to six weeks depending on the trade. DDU-GKY courses commonly run in three-, six-, nine- or twelve-month formats, and official answers put the minimum placement target for training partners at 70% of trained candidates. Ask the centre for its own figures for your course.
Step 1: Count the real hours
People underestimate hours because they count only the "main" work. Include all of these for a typical week:
- Core work (milking, stitching, cooking, shop opening hours)
- Buying inputs (fodder, cloth, raw material)
- Travel to market, bank, SHG meetings
- Selling, delivery, collecting payments
- Cleaning, maintenance, record keeping
- Hours that family members contribute
Write them in a table for one normal week and one peak week (for example, festival season).
Step 2: Estimate monthly income and costs
Use local, current prices. Ask existing members of your SHG or VO who already run the same activity. Write:
- Expected sales per month in a normal month and a lean month
- Raw material, feed, electricity, transport, packaging
- Loan instalment (check with the EMI calculator)
- Repairs, vet or maintenance costs averaged per month
- Losses (animal illness, unsold stock, returns)
Step 3: Work out earnings per hour
Net monthly earnings = Sales − All costs − Loan instalment
Earnings per hour = Net monthly earnings ÷ Monthly hours
Then compare with what the same hours would earn in local wage work or a job. Notified minimum wages vary by state and type of work; check your state labour department's current rates rather than relying on old figures.
Worked example: two cows vs tailoring
Meena, an SHG member, is choosing between buying two cows with a ₹1,20,000 SHG-linked loan and tailoring with a ₹40,000 machine and stock.
Dairy (illustrative):
- Milk sold: 14 litres a day × ₹40 × 30 days = ₹16,800
- Feed, fodder, vet, insurance: ₹9,000
- Loan instalment (₹1,20,000 at 7% for 3 years): ₹3,705
- Net: ₹16,800 − ₹9,000 − ₹3,705 = ₹4,095
- Hours: 4 hours a day for her plus 1 hour a day from her husband = 5 × 30 = 150 hours
- Earnings per hour: ₹4,095 ÷ 150 = about ₹27
Tailoring (illustrative):
- Sales: ₹12,000
- Material and electricity: ₹4,800
- Loan instalment (₹40,000 at 7% for 3 years): ₹1,235
- Net: ₹12,000 − ₹4,800 − ₹1,235 = ₹5,965
- Hours: 6 hours a day × 25 days = 150 hours
- Earnings per hour: ₹5,965 ÷ 150 = about ₹40
| Measure | Dairy | Tailoring |
|---|---|---|
| Monthly sales | ₹16,800 | ₹12,000 |
| Net after costs and EMI | ₹4,095 | ₹5,965 |
| Household hours a month | 150 | 150 |
| Earnings per hour | ~₹27 | ~₹40 |
| After loan is repaid | ~₹7,800 a month | ~₹7,200 a month |
The answer is not automatic. Dairy earns less per hour while the loan runs, but leaves her with productive animals and a higher net (about ₹7,800) once the loan ends, assuming milk yield holds. Tailoring pays better per hour now but depends on orders. Lean months matter too: if milk drops to 9 litres in summer, dairy net falls by ₹6,000 to a loss for that month.
Step 4: Check the stretch months
Run the same sum for your worst realistic month. If the net turns negative, you need savings or a smaller loan. A business that pays well in good months but cannot cover the instalment in lean ones will push you into borrowing elsewhere. The irregular-income budgeting guide shows how to build a buffer.
Step 5: Count the cost of getting started
Training and set-up also take time and money. A residential course means days away from wage work or the household; a placement-linked course may mean months without earnings and then moving to a city. Add up lost wages during training, travel, your own contribution to any asset, and the first month's working capital. If the unit takes three months to earn steadily, divide the start-up cost by the expected monthly net to see how many months it takes to recover it. For example, ₹12,000 of start-up costs recovered from ₹4,000 a month takes three months.
Step 6: Questions to ask before you sign up
- What do existing members actually earn in this activity, in good and bad months?
- Who buys the produce, at what price, and when do they pay?
- What training is given, for how long, and is there follow-up support?
- For placement programmes: where is the job, what is the take-home salary, and what will rent and food cost there?
- What happens if the animal dies, the machine breaks, or I fall ill? Is insurance available?
- Is there any fee? Government programmes such as RSETI and DDU-GKY training are meant to be free to trainees; be wary of anyone asking for money to "get you in".
Lakhpati Didi as a yardstick
The Lakhpati Didi target counts an SHG member whose household income is at least ₹1 lakh a year, sustained across at least four seasons or business cycles, about ₹8,300 a month on average. It is a useful benchmark, but it is household income across all sources, not the earnings of one activity. For the loan side, see NRLM SHG loans and Lakhpati Didi.
Key takeaways
- Count every hour, including travel, selling and family help, for a normal and a peak week.
- Net earnings = sales minus all costs and the loan instalment; divide by hours for earnings per hour.
- In the example, dairy earned about ₹27 an hour and tailoring about ₹40 an hour while the loans ran.
- Always test the worst month; if it goes negative, reduce the loan or build savings first.
- Ask existing members and the training centre for real figures, and never pay agents to join a free programme.
Related guides: Does a Skill Course Include Placement? How to Check, Changing District With a Livelihood Application Pending.
Frequently asked questions
How do I estimate earnings before joining a livelihood programme?
List the hours you will spend each week, including travel, buying and selling time. Estimate monthly sales and subtract all costs, including loan instalments. Divide the net amount by monthly hours to get earnings per hour and compare it with the local daily wage you would otherwise earn.
How long are RSETI training courses?
RSETI courses are short, free and residential, typically from about a week to six weeks depending on the trade. Check the exact course length with your district RSETI or the sponsoring bank.
Does DDU-GKY guarantee a job after training?
No individual guarantee is given. Training partners must meet placement targets, which official answers put at a minimum of 70% of trained candidates. Ask the training centre about the course duration, job location, expected salary and past placement record before enrolling.
What earning is needed to be counted as a Lakhpati Didi?
An SHG member whose household income is at least ₹1 lakh a year, sustained over at least four agricultural seasons or business cycles. That is about ₹8,300 a month on average.
Should I count my family's unpaid help?
Yes. Add the hours family members put in. If the activity only pays because others work for free, the earnings per hour for the household are lower than they look.
This article is for general education and is not personalised financial, tax or legal advice. Rates and rules are as of 4 Nov 2026; confirm current terms with your lender, AMC or a qualified adviser.
