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Labour Laws Central Ministry of Labour and Employment Minimum Wages Act, 1948

Clarification on National Minimum Wage Scheme for khadi workers

16-Mar-2023 | Press Note

The Ministry of MSME through Khadi and Village Industries Commission (KVIC) has implemented various schemes under the Khadi Vikas Yojana for upliftment of Khadi artisans, as follows: - 1. 35% quantum of Modified Marketing Development Assistance (MMDA) is provided to artisans as incentive in case of KIs of Cotton, Woolen, Polyvastra and 30% quantum of MMDA is provided as incentive to KIs for silk. ii. Financial assistance is also provided under Workshed Scheme for construction of individual as well as group workshed for smooth and fatigue free work environment. Further, spinning wages of the artisan to be increased from Rs. 7.50/-per hank to Rs.10.00/- per hank and weaving wages for Cotton Khadi, Woollen Khadi and Polyvastra will increase by 10%, effective from 01.04.2023. It has been notified by the government that the proposed National Minimum Wage Scheme is not applicable to khadi workers as the minimum wages meant for Skilled ,Semi-skilled, Unskilled labourers of agriculture and other segments are based on time rate system for 8 hours which is not applicable to Khadi Sector as they are involved in Khadi activities as a part time work in which the wages is based on piece rate system depending on their production capacity. Note: Khadi means any cloth woven on handlooms in India from cotton, silk or woolen yarn handspun in India or from a mixture of any two or all of such yarns, whereas for readymade garments, there are no such restriction, as per the Khadi and Village Industries Commission Act.

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