In­dia: Min­i­mum wage in­crease in Ut­tar Pradesh; com­pa­nies have ‘no other op­tion’

Stitch World - - NEWS TRACK -

Gar­ment work­ers in Ut­tar Pradesh, (In­dia), now have a rea­son to re­joice as the State Gov­ern­ment has in­creased the min­i­mum wage of the work­ers. Cur­rently the min­i­mum wages for un­skilled, semi-skilled and skilled work­ers are Rs. 7,674.45, Rs. 8,443 and Rs. 9,457.49 re­spec­tively. Ac­cord­ing to the new rule, the wage is sup­posed to get in­creased by Rs. 61, Rs. 69 and Rs. 76, re­spec­tively. These rates will be valid up to 31st March 2019.

The ap­parel man­u­fac­tur­ing com­pa­nies in Noida seem to be pre­pared for the rise. “Def­i­nitely in­creased wage is al­ways a bur­den but there is no op­tion. As we knew well in ad­vance that min­i­mum wage has to grow from this month, hence ten­ta­tively, one can plan in ad­vance ac­cord­ingly,” said Ra­jeev Bansal, MD, Ce­les­tial Knits & Fabs, Noida and Di­vi­sional Chair­man, In­dian in­dus­tries As­so­ci­a­tion, Meerut.

The full im­pact of the wage raise will be known in a few months, but as of now, the in­dus­try does not seem to be too wor­ried, which is a pos­i­tive sign.

Con­tin­u­ous in­crease in min­i­mum wages in Delhi and Gur­gaon, was one of the ma­jor rea­sons that few years ago, many ap­parel ex­porters shifted their fac­to­ries to Noida. Now with this in­creased wage rates in Ut­tar Pradesh, the dif­fer­ence be­tween the two main ap­parel man­u­fac­tur­ing hubs of NCR – Noida and Gur­gaon – has nar­rowed down to just Rs. 871, as the min­i­mum wage for a skilled worker in Gur­gaon is Rs. 10,328.83.

The pro­posed wage hike for Delhi is still in the court and var­i­ous stake­hold­ers have dif­fer­ent opinions and re­ac­tions on this. In Delhi, the min­i­mum wages of un­skilled work­ers were re­vised in March 2017 from Rs. 9,724 to Rs. 13,350 per month, for semi-skilled work­ers from Rs. 10,764 to Rs. 14,698 and for skilled labour­ers from Rs. 11,830 to Rs. 16,182. In April 2018, there was again a lit­tle hike in these rates. As the Delhi High Court put a stay on the State Gov­ern­ment’s no­ti­fi­ca­tion, the is­sue is now in Supreme Court.

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