A new wage agreement for hosiery workers in Tirupur has been finalised following months of negotiations between manufacturers’ associations and trade unions, marking the conclusion of a prolonged consultative process after the previous pact expired in September 2025.
The earlier agreement, signed in September 2021, had lapsed at the end of its four-year term, prompting stakeholders across the industry to constitute a joint committee to negotiate revised terms. The committee conducted sustained discussions over a five-month period, holding eight rounds of talks before convening a ninth and final meeting on 17th March 2026, where the agreement was concluded.
A. Sakthivel, Honorary Chairman of the Tiruppur Exporters’ Association, presided over the meeting for the first time and was described as having played a key role in facilitating dialogue between the two sides. Prem S. Duraisamy, advisor to the joint committee, was said to have provided detailed explanations of the demands raised by both manufacturers’ bodies and trade unions, contributing to the consensus-building process.
The negotiations brought together representatives from several industry bodies, including the South India Hosiery Manufacturers’ Association (SIHMA), Tiruppur Exporters’ Association (TEA), Knit Cloth Manufacturers’ Association (KNITCMA), Tiruppur Export Knitwear Manufacturers Association (TEKMA), Tiruppur Exporters and Manufacturers Association (TEAMA), and the South Indian Imported Machine Knitters Association (SIIMKA).
Office bearers from nine major trade unions also participated in the discussions, namely Labour Progressive Federation (LPF), Indian National Trade Union Congress (INTUC), Marumalarchi Labour Front (MLF), Centre of Indian Trade Unions (CITU), Hindu Mazdoor Sabha (HMS), All India Trade Union Congress (AITUC), Bharatiya Mazdoor Sangh (BMS), Anna Thozhilalar Peravai (ATP), and Banian Thozhilalar Munnetra Sangam (DTMS)..
The agreement, reached under Section 18(1) of the Industrial Disputes Act on 17th March 2026, provides for a cumulative wage increase of 33% over a four-year period from 2026 to 2030. The increase will be implemented in a staggered manner, with an 18% rise in the first year followed by increments of 5% in each of the subsequent three years.
In addition to the wage revision, the agreement introduces a revised dearness allowance structure linked to the Chennai City Cost of Living Index. Workers will receive a monthly allowance of Rs. 2,500 (US $27) at an index level of 20,000 points, along with an incremental increase of 15.5 paise for every additional point, effective from 17th March 2026.
The settlement also includes provisions for a daily travel allowance of Rs. 30 (US $0.32) for each working day and an overtime tea allowance of Rs. 60 (US $0.64) for workers undertaking night shifts. Furthermore, a family welfare measure has been incorporated, providing financial assistance of Rs. 21,500 (US $230) to the family of a worker who dies during employment, subject to a minimum of six months of service.
The agreement is expected to provide stability to Tirupur’s hosiery sector, a key contributor to India’s textile exports, while addressing worker welfare through structured wage and benefit enhancements.
