Joint statement on minimum wage compliance in Sindh's garment and textile sector
Assessments indicate that certain workers in garment factories in Sindh, Pakistan are being paid below the legal minimum wage because current law appears to allow employers to count bonuses and allowances paid to skilled workers to contribute toward the worker’s minimum wage threshold.
On June 16, the Fair Labor Association, the American Apparel & Footwear Association, amfori, Ethical Trading Initiative, Ethical Trade Denmark, Ethical Trade Norway, and Fair Wear asked officials in Sindh to include in the upcoming gazette notification for semi-skilled, skilled and highly skilled workers an explicit anti-adjustment clause, and to clarify in writing that no variable payment, bonus, or allowance may be counted toward the minimum wage for any worker category.
The Government of Sindh has responded to confirm that Sindh law has never permitted conditional payments that defeat the purpose of the law and has committed to review the language, scope and applicability of the notification in the forthcoming wage notification cycle.
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