Home / Knowledge / News / Textiles / New labor law burden on clothing industry?
New labor law burden on clothing industry?
Jan '08
China has implemented a new labor contract law on January 1, according to which employees cannot work more than forty hours per week and if they do, the employer has to pay. This led to the increase in production cost. As a result garment manufacturers raised the prices of final products.

The New labor contract law, further, requires the employers to shoulder higher social insurance and housing allowance for their employees. At the same time, enterprises cannot easily expel workers, thus making textile mills lose flexibility in facing demand changes.

Industry experts estimate that this law will increase operating cost up to 30 percent. Enterprises will also have to pay for staff welfare five times higher than the original level.

The enactment of this new law has just come at the time when competitiveness of China's clothing industry is relatively weak. The average annual salary of the employees will increase by 10-15 percent. Although by the standards of the West, the labor cost still remains cheap.

Fibre2fashion News Desk - China

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search