TCF POST Desk
A coalition of leading international trade organizations, representing thousands of global brands and retailers, has secured a significant clarification from the Government of Sindh regarding minimum wage compliance in the region’s garment and textile sector.
The coalition—which includes the American Apparel & Footwear Association (AAFA), amfori, the Ethical Trading Initiative (ETI), Ethical Trade Denmark, Ethical Trade Norway, the Fair Labor Association (FLA), and Fair Wear—had raised concerns that some local suppliers were improperly calculating minimum wages. Previously, some employers counted variable payments, such as bonuses and allowances intended for skilled workers, toward the mandatory minimum wage threshold. The coalition argued that this practice violates international labor standards, creates livelihood risks for workers, and poses compliance risks for international buyers.
On June 16, 2026, the group formally requested that the Sindh government include an explicit “anti-adjustment clause” in upcoming wage notifications to prevent such practices.
The Labour and Human Resource Department of the Government of Sindh responded promptly, confirming that under Section 9(1) of the Sindh Minimum Wages Act, 2015, variable payments cannot be used to defeat the purpose of the guaranteed wage floor. The department affirmed that any arrangement resulting in payments below notified rates is inconsistent with the Act and subject to legal consequences. Furthermore, the government welcomed technical support from the International Labour Organization (ILO) to align regional wage-setting frameworks with international best practices.
This clarification is a critical step for industry stakeholders navigating global requirements like the EU’s Corporate Sustainability Due Diligence Directive. The coalition is now encouraging members to work collaboratively with suppliers to ensure any outstanding wage gaps are rectified, further solidifying Sindh’s standing as a responsible hub in global supply chains.
