After a lot of confusion and debate over the increase in minimum wages as per the new labour laws, the Government has finally given some relief to the already struggling garment industry by stating that the minimum monthly wages are not going to be fixed at Rs 18,000/-. Prior to this, The Apparel Export Promotion Council (AEPC) had urged the Indian Government to clear the confusion over minimum wages for the garment sector at the earliest, as a clarification would restore the confidence of foreign buyers.
“The confusion was affecting booking of export orders,”said Ashok G Rajani, Chairman, AEPC. The cost of wages in the garment export sector is around 30% of freight on board (FOB), the highest by any standard, exacerbated by the ground reality that the apparel industry is passing through a challenging phase due to the slowdown of global economy. Doubling the minimum wages from the present Rs 9,000/- odd per month would have been a big blow as garment manufacturing would have become unviable and unsustainable and would grossly affect employment in the sector. Moreover, women would have faced the brunt of the impact, as around 70% of the workforce in readymade garments Industry is comprised of women.
The Central Government clarified in early September that the Ministry of Labour has not fixed or mentioned any amount as ‘national minimum wage’ in the Code on Wages Bill 2017. The apprehension that minimum wage of Rs. 18000/- per month has been fixed for all employees is thus incorrect, false and baseless. The minimum wages will vary from place to place depending upon the skill set required, arduousness of the work assigned and geographical location.
This story is from the September 2017 edition of Perfect Sourcing.
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This story is from the September 2017 edition of Perfect Sourcing.
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After a lot of confusion and debate over the increase in minimum wages as per the new labour laws, the Government has finally given some relief to the already struggling garment industry by stating that the minimum monthly wages are not going to be fixed at Rs 18,000/-. Prior to this, The Apparel Export Promotion Council (AEPC) had urged the Indian Government to clear the confusion over minimum wages for the garment sector at the earliest, as a clarification would restore the confidence of foreign buyers.
