The government's decision to increase workers' wages by 21 per cent has posed a negative impact on the Micro, Small, and Medium Enterprises (MSME) sector, pressuring the entrepreneurs to elevate the wages up to 60 per cent.

The entrepreneurs, as a result, changed their stance towards the government orders and started to oppose them. The administrative officials are facing problems with the enforcement of regulations. Entrepreneurs said that the wage hike has increased the financial burden on a worker by approximately 3,000 rupees per month.

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For now, the entrepreneurs can afford it. However, with the overtime elevation of wages, a worker who used to earn 20,000 rupees would eventually earn 32,000 rupees. Therefore, bearing the financial burden of 12,000 rupees per worker is simply not possible for entrepreneurs.

What Are the Entrepreneurs Saying?

Several people have shared their views regarding the matter. NTUC District President KP Ojha said that no committee has been formed regarding minimum wages since 2011. The committee that has been formed now is not in accordance with the rules.

Amit Singhal, director of Lucet Publishing Company in Sector 80, said that they used to pay a worker 13,000 rupees per month for eight hours. Now, with the government orders, the worker's salary has been increased to 15,730 rupees.

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According to this salary, four hours of overtime per day has become Rs 560. Previously, at Rs 60 per hour, four hours of overtime would have been Rs 240 per day. This translates to Rs 14,560 for 26 days, plus the salary plus overtime.

Adesh Sharma, director of Sector-63 Ankur Upset Private Limited Company, said that if a worker was hired for eight hours for Rs 13,000 and overtime was done at Rs 60 per hour, the monthly overtime charge would be Rs 6,420 per month.

The total salary used to be Rs 19,420. Including PF and ESIC, the cost per worker would have been Rs 20,000 to Rs 21,000. However, this cost has now risen to Rs 12,000 per worker, which will break the backbone of MSMEs. Industrial units will be forced to migrate.