Apparel manufacturers worry as minimum wage increased in Uttar Pradesh

Continuously increasing minimum wage has become an issue for Indian apparel manufacturers, especially when controlling cost is one of the biggest focuses for the industry.

From 1st April, 2019 units in Uttar Pradesh are bound to give new increased minimum wage which is actually increased due to new dearness allowances. Now with the increased wage even a factory of 100 machines will have an extra average cost of Rs. 75,300 per month as such factory normally has at least 100 operator (skilled) and around 100 workers (unskilled or semi-skilled). As of now this increase is applicable till the end of September, 2019.

Minimum wage in Uttar Pradesh

Category

old wage

New wage

Increase

Unskilled

7675

8012

337

Semi-skilled

8443

8814

371

Skilled

9457

9873

416

INR, per month

As wages increase on a regular basis, garment manufacturers are mentally prepared for the increased cost but they find helpless themselves.

Many factories work on piece rate (paying per piece rather than minimum wage) they are also facing heat of increased minimum wage as their operators do demand for higher piece rate.

Earlier apparel factories moved from Delhi to Noida as Delhi has higher minimum wage compared to Noida. But now apparel manufacturers running factories in Noida donít see any option as most of them are not comfortable to run factories in remote areas or the states where minimum wage is still low. Raw material availability and many other such reasons are the hurdles to develop factories in such states.

 

 

 

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