Sure, I can provide some guidance on how to calculate the latest living wages and prevailing wages for the garment industries in Tirupur, Coimbatore, India.
📅 Step 1: Determine the Basic Pay:
Start with the basic pay of employees. The minimum wage for unskilled labor in Tamil Nadu, as per the latest labor laws, is INR 8,000 per month. This would be the base from which you'll calculate the living wage and prevailing wage.
📅 Step 2: Add the Dearness Allowance:
Dearness Allowance (DA) is a cost of living adjustment allowance paid to employees in India. It is calculated as a percentage of basic pay, with the percentage determined by the Indian Labour Bureau. The current DA is 28% of the basic pay.
📅 Step 3: Calculate the House Rent Allowance:
House Rent Allowance (HRA) is a component of the salary provided by an employer to an employee to meet the cost of renting a home. It varies by city and it's usually between 10% and 50% of basic pay.
📅 Step 4: Include Other Allowances:
Other allowances such as Medical, Transport, or Special Allowance should also be included in the wage calculation.
📅 Step 5: Calculate Gross Salary:
Add up Basic Pay, DA, HRA, and Other Allowances to get the Gross Salary.
The above steps will help you calculate the living wage. 🏧👶
Now, to calculate the prevailing wage, you would need to conduct a wage survey or refer to a recent and reliable wage survey conducted in the Tirupur garment industry. 💼
⚠️ The prevailing wage is the wage paid to the majority of workers within a particular area. It's calculated by examining what workers in similar jobs, with similar skills and qualifications, are paid in the same geographical area.
🔡 Note: It's important to comply with the Minimum Wages Act, 1948, and other relevant Indian Labor laws when calculating wages. Always ensure that your wage calculations are in line with the latest regulations and statutory requirements.
I hope this helps! If you have any other questions, feel free to ask.