By Nishel Fernando
The Joint Attire Affiliation Discussion board (JAAF) pressured that the official garment employee minimal wage doesn’t paint an correct picture of the entire earnings of a garment employee in Sri Lanka.
Responding to a current article printed on Simply-Type, JAAF Basic Secretary Yohan Lawrence identified that the present two-tiered system of a hard and fast fundamental wage is complemented by productivity-based funds together with different non-cash advantages.
The Clear Garments Marketing campaign, the worldwide alliance of labour unions and nongovernmental organisations, claimed that Sri Lanka’s garment {industry} minimal wage pay scale usually has “did not cowl a employee household’s wants, as a consequence of excessive inflation”.
In March this 12 months, the federal government elevated the nationwide dwelling wage by 40 %, from Rs.12,500 (US $ 42) to Rs.17,500 (US $ 59) monthly, on prime of a Rs.3,500 budgetary aid allowance, bringing the entire minimal month-to-month pay to Rs.21,000 (US $ 70). In the meantime, the attire sector’s industry-agreed minimal wage, together with the federal government budgetary allowance, stands round Rs.24,000 (US $ 80).
“The article refers back to the nationwide minimal wage, which covers the fastened month-to-month element of worker earnings (the worker’s fundamental wage). While the nationwide minimal wage was elevated after a few years, the businesses will overview the essential wage yearly. They may, relying on their capacity to pay, enhance this fundamental wage on an annual foundation.
The article sadly doesn’t make any reference to both the variable parts of complete earnings (that are paid in money) or to any of the non-cash advantages afforded to the staff,” Lawrence responded.
The money advantages embody objects similar to manufacturing bonuses, attendance allowances, annual bonuses, skill-based funds and extra time.
“This two-tiered system of a hard and fast fundamental wage, complemented by productivity-based funds, has been the norm in all manufacturing industries, each domestically and globally,” Lawrence added.
Along with these money funds, the {industry} additionally offers non-cash advantages similar to subsidised meals and transport.
He additionally famous that a number of firms additionally present subsidised or free dry rations (one thing that was began on the peak of the financial disaster and continues even right now) or produce other comparable schemes to ease the burden of the price of dwelling on the staff.
Due to this fact, he argued that it’s unfair to evaluate the precise degree of earnings of the staff merely based mostly on the essential wage.
As well as, Lawrence famous that inflation has come right down to single digits since early 2023, after peaking to double digits in 2023, thereby, lowering the inflationary impact on the true wages.
In the meantime, the JAAF stays assured of reaching US $ 4.5 billion in attire export earnings this 12 months, regardless of the challenges.