Tirupur Hosiery Workers Secure 33% Wage Hike in New Four-Year Industry Agreement
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After months of detailed negotiations, hosiery workers in Tirupur India’s knitwear export capital have secured a major wage revision under a new four-year agreement between industry bodies and trade unions. The agreement replaces the earlier 2021 wage pact and comes after an extensive consultation process that included multiple stakeholder discussions.
The agreement was facilitated with the involvement of the Tiruppur Exporters’ Association and other industry associations, with key discussions chaired by industry veteran A. Sakthivel. The negotiations reflect a collaborative approach between employers and labour groups to ensure industrial harmony while addressing worker welfare concerns. The new agreement is expected to bring stability to the hosiery cluster, which is a major contributor to India’s knitwear exports and supports lakhs of workers directly and indirectly.
Structured Wage Increase to Improve Worker Livelihoods
The newly signed agreement provides a 33% cumulative wage increase between 2026 and 2030, ensuring gradual income growth for hosiery workers while allowing manufacturers to manage cost adjustments.
Key wage revision features include:
- 18% wage increase in the first year
- 5% increase annually for the next three years
- Four-year agreement validity (2026–2030)
- Agreement signed under Industrial Disputes Act provisions
The phased approach aims to balance worker welfare with industry sustainability, ensuring that wage growth remains manageable for manufacturers while improving worker earnings.
Additional Benefits Strengthen Social Security Measures
Beyond wage increases, the agreement introduces several worker welfare provisions covering allowances and social benefits. These measures aim to improve the overall quality of life of workers and strengthen labour relations in the textile hub.
Key additional benefits include:
- Dearness allowance linked to Chennai Cost of Living Index
- Monthly allowance of ₹2,500 at base index level
- Daily travel allowance of ₹30 per working day
- ₹60 overtime tea allowance for night shift workers
- ₹21,500 family support compensation in case of worker death
The agreement also highlights the role of multiple industry associations and nine major trade unions that participated in the negotiation process, demonstrating strong collective bargaining practices in the textile sector. Industry observers believe the settlement could improve workforce stability, enhance productivity and reduce labour disputes in Tirupur’s export-oriented hosiery sector.
11:35 AM, Mar 20
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