Facing a 40% Wage Hike in Food Processing: How Can We Sustain Our Business?

Shops and Commercial Establishment: 2016-2017

Unskilled: Basic & VDA = 4212 + 2703.60 = 6915.60

2017-2018

Unskilled: Basic & VDA = 42121 + 3070.80 = 7282.80

Difference Amount = 6915.60 - 7282.80 = 367.20

Food and Packing Industry: 2016-2017

Unskilled: Basic + VDA = 3627.01 + 3111.60 = 6738.61

2017-2018

Unskilled: Basic + VDA = 9100 + 1275 = 10375

Difference Amount = 6738.61 - 10375 = 3636.39

For food and processing, minimum wages increased by more than 40%. Our industry is food and processing only. If it's like 40%, how can we run the business? Now, an inspector is coming and saying that if you are not following the new minimum wages, then you must close the company! It's demotivating. For this issue, how can I solve it? Please suggest.

Thanks, Nagarjun R HR Admin Papas Trading Private Limited

Same thing happened for even Automobile Engineering when compared to the Engineering Industry.

AUTOMOBILE ENGINEERING

2017-18
SKILLED: 10322
SEMI: 10010
UNSKILLED: 9100
BASIC: 10322, VDA: 765.6, TOTAL: 11087.6, INCREASE: 4413.2

2016-17
SKILLED: 2648.7
SEMI: 2550
UNSKILLED: 2229.8
BASIC: 2648.7, VDA: 4025.7, TOTAL: 6674.4

ENGINEERING INDUSTRY

2017-18
SKILLED: 4451.2
SEMI: 4293.9
UNSKILLED: 4241.9
BASIC: 4451.2, VDA: 3478.8, TOTAL: 7930, INCREASE: 367.2

2016-17
SKILLED: 4451.2
SEMI: 4293.9
UNSKILLED: 4241.9
BASIC: 4451.2, VDA: 3111.6, TOTAL: 7562.8

Experts, kindly advise on how to take up this issue with the Labor Department.