Home / Knowledge / News / Apparel/Garments / Unprecedented minimum wage hike in Delhi
Unprecedented minimum wage hike in Delhi
01
May '10
The minimum wages in Delhi are now at the highest level in the country, following the 49 percent raise in minimum wages, increased by the Delhi Government from February this year.

These increase in minimum wage levels have affected the wage bills of industries in the National Capital Territory (NCT) drastically, owing to which a number of industries are looking for the shift to suburban areas such as Faridabad, Noida and Gurgaon.

While the larger industries, which already pay higher wages, feel comparatively less heat of this increase, the smaller enterprises in the micro, small and medium enterprises (MSME) as well as the export-based units, are the most impacted industries, where the margins fluctuate with the currency rates.

Salaries at lower levels, for unskilled labourers have increased to Rs 5,278 from Rs 3,953 a month, while on the higher end, for graduates it has been increased to Rs 7,020 from Rs 4,713. Such a steep increase in minimum wages has taken place for the first time, as usually it is increased by 5 to 6 percent, twice in a year.

This wage increase does not include provident fund deduction and the ESI, hence it hikes wages by an additional 6 to 7 percent, which is very high for the industries such as apparel exports, said an official, who further opined that the potential of the industry regarding salary payment must be examined, as not all the industries can afford similar wage payment.

For instance, if an apparel company employs around 1,000 workers including 600 tailors and if for tailors, the average wage goes up to Rs 6,500 from Rs 5,000, the company's wage bill would increase by about Rs 900,000 to one million per month.

There are around 500 apparel export companies in Delhi, operating in Naraina, Kirti Nagar, Okhla, I P Extension, and other small industries more than these. A lot of big and small industries are considering relaocting their industries to the nearby towns of Gurgaon, Noida and Faridabad to evade higher costs.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search