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Delhi SMEs feel burdened due to the revised minimum wage

Updated: Jun 22, 2015 02:19:30pm
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New Delhi, 22 June (KNN) The revised wage rate, which came to effect from 1 April, 2015, have put additional cost burden on the Delhi industrialists, forcing them to migrate to neighboring states like Haryana and Uttar Pradesh where the wages are 25-30 per cent lesser.
 
The Labour Department of Government of NCT approved of the revised minimum wage for both - skilled and unskilled workers in Delhi which came into effect from April 1.
 
Unskilled worker's minimum wage was revised from Rs 8,632 to Rs 9,048. Similarly wages of semi-skilled, skilled and graduate workers were increased from Rs 9,542, Rs 10,478 and Rs 11,414 to Rs 10,010, Rs 10,998 and Rs 11,986 respectively.
 
The increment has been happily accepted and appreciated by the working segment of the society but the industries in Delhi seem to have adverse reaction in this regard.
 
The industrialists in Okhla pointed out that the raised minimum wages are 25 per cent to 35 per cent higher than in neighboring Haryana and Uttar Pradesh.
 
For Instance, after the revision of wage rates in April, the wage for unskilled work like loading and unloading trays is Rs 348 per day in Delhi, while in Uttar Pradesh, it is only Rs 259.
 
The President of the Okhla Industries Association, Harsh Arora said “The difference between the minimum wages in Okhla and Faridabad is approximately of Rs 3050, despite of the fact that the two places are only 3 kilometers apart.”
 
“The increment has increased the pressure on industrialists as it has put extra pressure on the company’s account” Arora added.
 
Arora, who operates small manufacturing units in Okhla, claimed that half of Okhla industrialists had relocated to Uttar Pradesh and Haryana in the last five years because of the wage differences. According to him, the wage increases have served to make workers in Delhi lazier. (KNN/J)

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