OCCUPATIONAL WAGE SURVEY SIXTH ROUND 2008

REPORT ON TEXTILE GARMENTS INDUSTRY

CHAPTER–IV

 

PAY ROLL EARNINGS

 

4.1    INTRODUCTION

 

Payroll earnings of workers in different occupations in an industry/region reflect the inter-industry and intra-industry differentials in income and socio-economic conditions of the workers. Data on earnings from payrolls of establishments refer to cash payments received by the workers from the employers. It include remuneration paid to workers regularly in every wage period for normal working hours, overtime payment, bonus (production, incentive, attendance, etc.), dearness allowance, remuneration for time not worked (public holidays, sick leave and other paid leave), other cash allowances of a regular nature, and regular payments made in kind.  Payments of irregular nature, such as, profit sharing bonus, ex-gratia payment, etc. are excluded from the scope of data on earnings.  Similarly, payments made towards free housing, ex-gratia payments like gratuity; lay-off compensation, etc. are also excluded from the scope of earnings.  The requisite information collected during the course of survey from a sample of workers drawn from each selected occupation in Textile Garments Industry is analysed in the succeeding paragraphs.

 

The information on average daily earnings, presented in this Chapter and elsewhere in the Report, relates to wages/earnings per manday paid for.  For arriving at the figure of average daily earnings, the total payroll earnings in a pay period is divided by the total number of days paid for during the period i.e. the total number of days worked plus the number of days not worked but paid for.

 

4.2    AVERAGE DAILY EARNINGS BY SEX-AGE

 

The average daily earnings of the workers by sex-age in Textile Garments Industry are presented in Table 4.1. It reveals that average daily earnings for men, women and overall were reported at  Rs.151.10, Rs.113.63 and Rs.128.90 respectively. At the stratum level the average daily earnings of men workers were more than the women workers in all the strata except in Uttar Pradesh stratum.

 

The highest average daily earnings of all workers were reported at Rs. 167.94 in Maharashtra Stratum, closely followed by Rs.163.18 in Residual  Stratum. The lowest average daily earnings of all workers were reported at Rs. 105.47 in Tamil Nadu Stratum. The highest and the lowest average daily earnings of women workers

were reported at Rs.155.63 and Rs.99.55 in Delhi stratum and Tamil Nadu stratum respectively.   In  case of  men  workers the highest

 

average daily earnings were reported at Rs.188.30 in Residual Stratum closely followed by Maharashtra Stratum at Rs.177.08 whereas the lowest average daily earnings were reported at  Rs.122.35 in Haryana stratum.

 

4.3    AVERAGE DAILY EARNINGS BY SYSTEM OF WAGE PAYMENT

 

The average daily earnings of workers by system of wage payment are given in Table 4.2.  The average daily earnings of Rs.231.66 for piece-rated workers were significantly higher than that of Rs.126.81 for time-rated workers.

 

4.4    AVERAGE DAILY EARNING OF TIME-RATED WORKERS

 

Table 4.3 presents average daily earnings of time-rated workers by sex-age.  The average daily earnings of time-rated workers for men, women and overall were recorded at Rs.146.93, Rs.113.54 and Rs.126.81 respectively.  The average daily earnings of men workers were higher than that of their women counterpart in all strata except Uttar Pradesh.  The highest average daily earnings of time-rated men and women were reported at Rs.183.24 in Residual stratum and Rs.155.63 in Delhi stratum respectively.  The lowest average daily earnings of time-rated men and women were reported at Rs.122.35 in Haryana stratum and Rs.99.52 in Tamil Nadu stratum respectively.

 

4.5    AVERAGE DAILY EARNINGS OF PIECE-RATED WORKERS

 

Sex-wise information on average daily earnings of piece-rated workers is given in Table 4.4.  The average daily earnings of piece-rated workers for men, women and overall worked out to Rs.241.12, Rs.142.32 and Rs.231.66 respectively. The highest average daily earnings of piece-rated men and piece-rated women were reported at Rs.433.12 in  Uttar Pradesh stratum and Rs.280.00 in Residual stratum, respectively.  The lowest average daily earnings of piece-rated men and piece-rated women were reported at Rs.145.65 in Delhi stratum and Rs.132.09 in Tamil Nadu stratum, respectively.

 

4.6    AVERAGE DAILY EARNINGS BY COMPONENTS

 

The average daily earnings by components are presented in Table 4.5.  It shows that the basic wages, dearness allowance and other allowances were the main components of earnings of the workers.  These components taken together accounted for 92.64 per cent of total average daily earnings in the Textile Garments Industry. The other components of earnings in order of their percentage  contribution  in the total average daily earnings have

been house rent allowance (6.25 per cent), bonus (3.11 per cent), CCA (0.11 per cent) and benefits in kind (0.01 per cent). The House rent allowance and other allowances were paid to the workers in all strata of the Textile Garments Industry.  Similarly, the workers in all the strata except Haryana and Maharashtra received dearness allowance and the workers in all the strata except Haryana and Uttar Pradesh received bonus.  However, city compensatory allowance was paid to workers in Tamil Nadu stratum only and benefits in kind was  paid to the workers in Residual stratum only.

 

4.7    PERCENTAGE DISTRIBUTIION OF WORKERS BY LEVELS OF AVERAGE DAILY EARNINGS

 

The percentage distribution of workers by different groups of average daily earnings is shown in Table 4.6. It is noticed that a vast majority of workers i.e. 75.77 per cent had average daily earnings between Rs.75.01 to Rs.150.00 whereas 5.05 per cent of workers earned Rs.250.01 and above per day.  Only 0.43 per cent workers had average daily earnings between Rs.25.01 to Rs.50.00.

 

At the stratum level, Tamil Nadu was the only stratum wherein  2.22 per cent of workers had average daily earnings between Rs.25.01 to Rs.50.00. Majority of workers i.e. 75.71 per cent, 69.81 per cent, 61.88 per cent and 63.78 per cent in Haryana, Uttar Pradesh, Karnataka and Tamil Nadu strata  respectively earned between Rs.75.01 to Rs.125.00, whereas the highest proportion of workers i.e. 69.99 per cent, 52.82 per cent and 47.61 per cent in Delhi, Maharashtra and Residual strata respectively earned between Rs.100.01 to Rs.150.00.  The highest percentage of workers earning more than Rs.250.00 per day was reported at 20.68 per cent in Residual stratum, followed by 14.82 per cent in  Maharashtra stratum and 12.59 per cent in Uttar Pradesh stratum, respectively.  The lowest percentage of workers earning more than Rs.250.00 per day was reported at 1.89 per cent in Tamil Nadu stratum.

 

4.8  DISTRIBUTION OF WORKERS BY WAGE LEVEL AND OCCUPATION

 

The percentage of workers in each occupation and the percentage of total wage bill accrued to them has been presented in Table 4.7. It reveals that 78.15 per cent of the total workers were employed in four main occupations viz. Tailor, Helper, Tailor (Specialist) and Checker in Textile Garments Industry. These four main occupations  accounted for 73.17 per cent of the total wage bill.  In general, it is observed that occupations that employed considerable number of workers, also accounted for the bulk of wage bill.

 

It is observed that occupation 'Tailor’ accounted for 32.27 per cent of the total employment with 32.85 per cent of the total wage bill as well. The other main occupation 'Helper' employed 24.69 per cent of the total workers and accounted for 19.16 per cent of the total wage bill in the industry. The occupations 'Tailor (Specialist)' and 'Checker'  employed 11.47 per cent and 9.72 per cent of the total workers and accounted for 12.06 per cent and 9.10 per cent of the total wage bill in the industry.

 

4.9  CO-EFFICIENT OF VARIATIONS IN AVERAGE EARNINGS BY OCCUPATIONS AND STRATA.

 

The coefficient of variation is a measure of relative dispersion and defined as:

 

                                    Standard Deviation

     Coefficient of Variance (CV) = -------------------- x 100

                                           Mean

 

It is generally expressed in terms of percentage. The use of Coefficient of Variance is important due to the fact that the Mean and Standard Deviation tend to change together in many experiments. Also the Standard Deviation is not a very helpful measure of dispersion when studied alone for any distribution, in general. Hence, knowledge of relative variation i.e. coefficient of variance is valuable in evaluating the consistency of various parameters estimated by a survey.

 

For comparing the variations in the average earnings at industry, stratum and occupation level, the co-efficient of variation in average daily earnings for all the strata and occupations in different industries were worked out.  These have been presented in the Tables 4.8.1 and 4.8.2, respectively.  The coefficient of variation for average daily earnings for some of the occupations could not be worked out because of the reason that only one worker was found employed in these occupations in an industry. The parameter for such occupations has been indicated by putting a dash (-) against these occupations.

 

It may be seen from Table 4.8.l that the highest co-efficient of variance was reported in Uttar Pradesh Stratum at 71.35 per cent, followed by 67.58 per cent in Residual Stratum and 61.33 per cent in Haryana Stratum of the Textile Garments Industry. The lowest coefficient of variance was reported in Maharashtra Stratum at 51.85 per cent.  The overall coefficient of variance in the Textile Garments Industry was reported at 58.79 per cent.

 

Table 4.8.2 presents occupation-wise coefficient of variance in the Textile Garments Industry.  The highest coefficient of variance was reported in occupation 'Store Keeper' at 93.83 per cent, followed by 63.33 per cent in the occupation 'Cutter'. The lowest coefficient of variance was reported at 0.99 per cent in 'Marker' occupation, followed by 25.86 per cent in 'Watchman' occupation, 26.00 per cent in 'Driver' occupation and 26.44 per cent in 'Sweeper' occupation.

 

4.10  AVERAGE DAILY EARNINGS BY OCCUPATION AND SEX-AGE

 

Average daily earnings of workers by occupation and sex-age have been presented in Table 4.9.  The highest average daily earnings were reported for 'Designer' at Rs. 338.93, followed by Rs. 282.80 for 'Store Keeper', Rs. 253.25 for 'Supervisor' and Rs. 200.44 for 'Cutting Machine Operator'. On the other hand, the lowest average daily earnings were reported at Rs. 89.97 for `Marker’ occupation, followed by Rs. 96.39 for 'Sweeper', Rs.100.03 for 'Helper' occupation and Rs.101.94 for 'Coolie/Mazdoor' occupation.

 

The women workers were employed in 21 out of 26 reported occupations in the Textile Garments Industry. Out of these 21 occupations, only women workers were employed in 'Marker' occupation.  Out of the 20 occupations which employed both men and women workers, the average daily earnings of the women workers were more than that of their men counterpart in 2 occupations, viz., 'Designer' and 'Stitcher'.  The highest average daily earnings of the women workers were reported at Rs. 352.22 in 'Designer' occupation, whereas, the lowest average daily earnings were reported at Rs. 89.33 in occupation 'Coolie/Mazdoor'. The highest average daily earnings of men workers were also reported in "Designer' occupation at Rs.331.95, whereas, the lowest average daily earnings were reported at Rs.102.68 in 'Sweeper' occupation.

 

4.11  AVERAGE DAILY EARNINGS BY OCCUPATIONS,SEX AND SYSTEM OF PAYMENT

 

The average daily earnings of workers by occupations, sex and system of payment have been presented in Tables 4.10.1, 4.10.2 and 4.10.3.  Table 4.10.1 shows that the average daily earnings of time-rated workers in Textile Garments Industry were lower than that of piece-rated workers in 6 occupations viz. Helper, Tailor, Cutter, Cutting Machine Operator, Ironer, and Tailor (Specialist) and  were higher in one occupation only i.e. Supervisor.  The highest average daily earnings of time-rated and piece-rated workers were reported at Rs.253.35 and Rs.585.00 for the 'Supervisor' occupation and 'Cutting Machine Operator' occupation respectively. Similarly the lowest average daily earnings of time-rated workers were reported at Rs.100.01 for the 'Helper' occupation and for piece-rated workers at Rs.173.00 each in 'Helper' and 'Supervisor' occupations.

 

     Table 4.10.2 shows the average daily earnings of time-rated workers by occupations and sex-age.  The average daily earnings of time-rated men, women and all workers were reported at Rs.146.93, Rs.113.54 and Rs.126.81 respectively.  The average daily earnings of time-rated women workers were less than their men counterparts in all the occupations where both men and women workers were employed except two occupations viz. 'Designer' and 'Stitcher'.  The highest average daily earnings of time-rated men and women workers were reported at Rs.331.95 and Rs.352.22 respectively for 'Designer' occupation and the lowest were reported at Rs.102.68 for 'Sweeper' and Rs.89.33 for 'Coolie/Mazdoor' occupations respectively.

 

     Table 4.10.3 shows the average daily earnings of piece-rated workers by occupations and sex-age.  The average daily earnings of piece-rated men, women and all workers were reported at Rs.241.12, Rs.142.32 and Rs.231.66 respectively.  The average daily earnings of piece-rated women workers were less than that of their men counterparts in all the occupations where both men and women workers were employed on piece-rated basis except in the occupation of 'Cutter' where their average daily earnings were equal.  The highest average daily earnings of piece-rated men workers were reported at Rs.585.00 in Cutting Machine Operator occupation whereas the lowest were reported at Rs.173.00 in two occupations namely Helper and Supervisor.

 

4.12  AVERAGE DAILY EARNINGS BY OCCUPATION AND COMPONENTS OF WAGES

 

The average daily earnings of workers by components in each occupation are depicted in Table 4.11. The analysis of the table shows that the basic wages alone was the major component of earnings in all the occupations.  Among other components of earnings, which had significant share were dearness allowance, other allowance and house rent allowance.  Bonus  was being paid in most of the occupations while HRA was reported to be paid in 50 per cent of the occupations in the  Textile Garments Industry.  However, benefits in kind were paid in only some of the occupations.

 

The percentage distribution of workers as per their average daily earnings by occupations and average daily earnings groups is given in Table 4.12.  It is observed that 2.24 per cent of workers in 'Sweeper', 1.78 per cent in 'Coolie/Mazdoor' and 1.22 per cent in 'Helper' occupations fell in the average daily income group of  Rs.25.01 to Rs.50.00. Further, a vast majority of the workers in 'Helper' and 'Sweeper' occupations  had average daily earnings between Rs.25.01 to Rs.100.00 whereas, all the workers in 'Marker' occupation were paid between Rs.75.01 to Rs.100.00.  The highest percentage of workers having average daily earnings of  Rs.250.00 was reported at 62.20 per cent in occupation 'Designer' followed by 42.25 per cent in occupation 'Supervisor'. 

 

4.13 TREND IN AVERAGE DAILY EARNINGS AND REAL EARNINGS OF WORKERS

 

The trend in average daily earnings of workers over different rounds has been presented in Table 4.13.  It is seen that the average daily earnings of all workers have registered an increase of 167.76 per cent in the 6th round over 5th round.

 

In order to assess the improvement in the economic conditions of the workers, it is necessary to examine the data on real earnings. The real earnings have been defined on the same line as the real wage rate defined in Para 3.9 under Chapter-III. The real earnings for the workers have been presented in Table 4.13. The Table reveals that the real earnings of the workers have increased at the rate of 27.34 per cent in 6th round over 5th round.