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As Delhi Govt tightens implementation of increased Minimum Wages, MSMEs feel burdened

Updated: May 10, 2017 07:54:18am
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As Delhi Govt tightens implementation of increased Minimum Wages, MSMEs feel burdened

New Delhi, May 10 (KNN) The AAP led Delhi Government earlier this month announced constituting special task force to ensure the enforcement of revised minimum wages. 

The special task forces will be deployed in every district and will stay in loop with the industries to ensure that the increased minimum wage plan is being followed.

While the government is trying to push this at priority, there are concerns associated with the move for the Micro, Small and Medium Enterprises (MSMEs)

Talking to KNN P. Kumar, President of Indian Council of Small Industries (ICSI) said that the increased wages to the workers might prove to be an added burden on the industries operating on micro and small levels.

He further lamented that the small units work on very marginal profits and do not have huge turnovers whereas he case of large industries is totally different. Therefore the government’s decision to implement the increased minimum wage will disturb the production cost.

Speaking of the backdrop of the situation, he said it is not long since the industry was hit badly due to Demonetization, while the industries were just recovering from the conditions that followed demonetization, there are talks of the change in tax regime from July. Such rapid changes are already hampering the industry.

“We are not in a position to increase the wage this soon, we need time. We are not totally against the increment of wages, but the nature of increment and the time bracket to implement has to be looked upon” he added.

Kumar acknowledged that there is frequent inflation and the salary they pay might not be satisfying for the workers, but the government should look for ways to tackle inflation instead.

Under the revised Minimum Wage plan approved by the Delhi government earlier this year, minimum wages in Delhi are to go up from Rs 9,724 to Rs 13,350 a month for unskilled labourers, from Rs 10,764 to Rs 14,698 for semi-skilled labourers and from Rs 11,830 to Rs 16,182 for skilled labourers. (KNN/ DA)

COMMENTS

  1. Vaish
    Vaish 10/05/2017 12:03 PM

    Unemployment rapidly growing. Small and micro enterprises should be exempted from minimum wages.

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