Karigars and Making Charges

How Indian gold jewellery is priced with gold value plus making charges, who the karigars (artisans) are, and why their pay is low despite high jewellery prices.

Gold jewellery in India is priced in two parts.

The price

Gold value: weight × current gold price.
Making charges: for design and labour, often 8 to 25 percent of gold value, or a fixed amount per gram.
GST: 3 percent on jewellery.

Karigars

Karigars are the artisans who make jewellery.
Many migrated from West Bengal to cities like Mumbai, Delhi and Kerala.
They often work in small workshops, sometimes living there.

Low pay

Karigars are often paid piece rates.
A large share of making charges goes to retailers and brands.
Machine-made jewellery reduces demand for handwork.

Wastage

Jewellers sometimes charge for “wastage” of gold during making, which can hide extra margins.

Consumer tip

Compare making charges and check hallmarking when buying.

The bill

A 10-gram gold chain costs the gold price plus 12 percent making charges plus 3 percent GST. The karigar who made it receives only a small share.

Thinking jewellery prices are only about gold

Making charges and wastage add a lot.

Key takeaways

Jewellery prices include gold value plus making charges.
GST on jewellery is 3 percent.
Karigars often earn low piece rates.
Wastage charges can hide margins.