VINAYA LAW FIRM

Labour: Prakas on Determination of Minimum Wage for Workers or Employees in the Textile, Garment, and Footwear Industries for 2019

Date of publication: 18-10-2018


Category: Legal updates


Audience: All


Prakas on Determination of Minimum Wage for Workers/Employees in the Textile, Garment, and Footwear Industries for 2019

    On 5 October 2018, the Ministry of Labor and Vocational Training (MLVT) issued the  directive (Prakas) stating that the minimum wage for workers/employees in the textile, garment and footwear industries for 2019 shall be officially set from 1 January 2019, at US182 (one hundred eighty-two) per month, settling an increase of 7% from the minimum wage for 2018.

    Furthermore, the Prakas provides that the minimum wage for probationary workers/employees shall be set at US$177 (one hundred seventy-seven) per month. After probation, the workers/employees shall receive a minimum wage of US$182 (one hundred eighty-two) per month (Point 1 of Article 2).

    In addition, workers/employees who are paid according to the quantities produced (piece-rate) shall receive their wage based on the actual quantities produced. If the quantities produced exceed the wage stipulated in Point 1 of Article 2, the workers/employees shall receive their wage according to the exceeding quantities. However, if it is lower than the wage stipulated above, the employer shall add any amount to make it US$177 (one hundred seventy-seven) per month for probationary workers/employees and US$182 (one hundred eighty-two) per month for workers/employees after probation (Point 2 of Article 2).

    Eventually, the Prakas states that other benefits which workers/employees have received so far shall be kept the same.