How to Calculate Allowance in a Garments Industry

By | October 19, 2015

How to Calculate Allowance in a Garments Industry

Noor Ahmed Raaz
Specialized in Apparel Manufacturing
Owner and Editor in chief Textile Merchandising
Asst. Prof., Department of Textile Engineering
Atish Dipankar University of Science & Technology
Email: mnnabi@adust.edu.bd

Allowance Calculation:

A worker can’t and does not work continuously within required time scheduling. In an apparel industry a worker has to do lots of work. For executing all of the work, a worker needs some time for personal and physical refreshment. Therefore, a worker needs some extra time allowed for performing the job. This extra time added with basic time during SMV calculation is known as allowance calculation. Allowance Calculation process in an important topic for a garments merchandiser. So, today i would like to discuss about allowance calculation process in garments industry.

We know that, the basic formula of Standard Minute Value (SMV)

SMV= Basic time + Allowance

Here,

Allowance= Relaxation allowance + Contingency allowance + Machine Delay Allowance.

Types of Allowance in Garments:

Following tree types of allowances are counted or added with basic time during SMV calculation.

1. Relaxation allowance

2. Contingency allowance

3. Machine time allowance

Types of Allowance

1. Relaxation Allowance:

Relaxation is the time allowed to a worker to feel up personal needs and to get back from fatigue. Relaxation allowance is divided by two ways. They are-

A. Personal allowance

B. Fatigue allowance

A. Personal Allowance:

Personal allowance is one kind of relaxation allowance which is most common allowance in garments. This allowance is provided for the need to leave the work place such as going to wash room, fetching a drink, etc. The common figure is about 5% to 7% of basic time.

B. Fatigue Allowance:

Fatigue allowance is not common allowance in garments. It is a mental and physical tiredness developed by an employee due to continuous work. This allowance is given depending on the energy expended in doing the job and to alleviate monitory. Normally it is counted as 4% on basic time.

2. Contingency Allowance:

Contingency allowance depends on the worker, physical strength for doing the job.  It is a small amount of allowance which is given to meet the legitimate delay of work. It is counted less than 5% of basic time.

3. Machine Delay Allowance:

Some time garments, machines are off due to mechanical or technical problems. These are applied to the total basic time for those elements which are concerned with the operation of machinery.

Here are some common figures of garments sewing floor.

  • Single needle lock stitch machine = 9%
  • Twin needle lock stitch machine = 14%
  • Three thread over lock machine = 7%
  • Four thread over lock machine = 9%
  • Five thread over lock machine = 11%

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