Textile bodies hail special package for apparel sector

23 Jun '16

4 min read

Senthilkumar also welcomed the relaxation of labour laws which has been a long pending demand of the industry. “The announcement of bearing 12 per cent of the employer’s contribution of Employee Provident Fund Scheme by the Government for the new employees of the garment sector for the first three years would greatly benefit the sector and the employees under the current scenario,” he said.

The SIMA Chairman hailed the announcement of optional EPF for employees earning less than Rs.15,000, describing it as a relief for the garmenting sector where large number of employees work for short term and prefer to take full wages without deduction.

Senthilkumar has said that increase of overtime cap from the current level of three hours to eight hours in line with ILO norms would benefit the garmenting sector to mitigate the labour shortage and meet the delivery schedule.

The introduction of fixed term employment, a long pending demand of the industry, would facilitate the garmenting sector to manage the production demand during peak season and enable the sector to grab the export orders, he said.

Senthilkumar also appreciated the increase of subsidy under Amended TUF Scheme for the garmenting sector from the current level of 15 per cent to 25 per cent and said such an attractive incentive would not only bring new investments, but also motivate the existing units to go for forward integration and increase exports. (SH)

Fibre2Fashion News Desk – India

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