Plantation workers to get revised daily wage of Rs. 1,350 from 10 October

The plantation sector workers will receive their long-awaited revised daily minimum wage of Rs. 1,350 along with an additional allowance of Rs. 50 for each extra kilo of harvest from 10 October.

The move follows recent negotiations between Regional Plantation Companies (RPCs), trade unions, and the Wages Board, culminating in an agreement with the Estate Sector Wage Control Council at the Labour Department.

“As per the latest Gazette, RPCs must pay a basic wage of Rs. 1,350 effective 10 October,” industry sources informed the Daily FT. 

The Rs. 1,350 basic wage excludes contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), but with those added, workers’ total earnings will exceed Rs. 1,500 per day.

The workers’ wages, typically calculated at the end of the month, are due to be paid on the 10th of the following month.

The wage agreement reached on 10 September followed multiple rounds of disagreements between employers and trade unions, with workers advocating for better compensation. The new wage structure agreed upon by all stakeholders was seen as a critical step in improving the livelihoods of plantation workers, who have long campaigned for fair wages.

“Under this productivity-based model, estate workers, including those in the tea and rubber sectors, can earn over Rs. 50 based on their output per day,” they explained.

The revised wage system applies to workers in the tea and rubber industries, including those involved in tea growing, tea manufacturing, rubber cultivation, and raw rubber processing.

Under the current system, plantation workers receive a basic wage of Rs. 1,000 with an additional Rs. 40 per kilo after reaching the target of 20 kilos of tea leaves.