Minimum Wage on Indian Tea Farms

We require full transparency from all our grower partners in providing information about how much their employees and workers are being paid. The minimum wage for tea field workers in India is lower than the national minimum wage. Read this article by Diane Swanbrow of University of Michigan to understand why this is so. We are working closely with independent tea growers and cooperatives to make sure that the producers of the tea are making enough to support their family and community.

A report was provided by a well-known tea estate in Darjeeling, India outlining the pay structure for tea field workers in Darjeeling on their tea farm. The minimum wage is set at Rs. 90 (about $1.50/day) but additional compensation is made available to the workers as highlighted in the report. These wages do not represent all tea gardens in India, but can serve as a point of reference.

 

Real wage of a daily rated worker in set garden ( Darjeeling)

As on 01.04.2013

  1. Daily wage -                                                               Rs. 90.00
  2. Additional Compensation -                                    Rs.   4.50
  3. Foodgrain -                                                                Rs. 17.27
  4. Dry tea -                                                                      Rs.  2.00 
  5. Fuel -                                                                           Rs.  5.00
  6. Housing facilities -                                                   Rs.   9.50
  7. Educational facilities-                                              Rs.  0.47
  8. Medical facilities-                                                      Rs.  4.75 
  9. Sickness benefit-                                                      Rs.  2.90
  10. Earned leave-                                                             Rs.  4.75
  11. National & Festivals holidays-                                Rs. 3.16  
  12. Welfare facilities-                                                       Rs. 3.80
  13. Maternity benefit -                                                      Rs. 2.37
  14. Provident Fund -                                                        Rs.10.80  
  15. Bonus –                                                                       Rs18.00
  16. Gratuity –                                                                     Rs.  4.70  

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                                                                                                 Rs.183.97