Rising living expenses, fear of contract hiring cast shadow on real gains.
Key Points
- Industrial workers in Noida and Manesar report wage hikes remain insufficient amid rising living costs and weak implementation mechanisms.
- Many employees continue earning below revised minimum wages, with contractual hiring practices limiting access to benefits and job security.
- Daily wage labourers fear reduced workdays as employers cut hiring to offset increased wage obligations.
- Workers highlight gaps in labour law compliance, including lack of subsidised meals, unpaid overtime, and inadequate medical coverage.
- Trade unions argue minimum wages fall short of living standards, with rising rents, food costs, and inflation eroding income gains.
Dinesh Kumar's story reflects a wider reality playing out across industrial hubs such as Noida (Uttar Pradesh) and Manesar (Haryana).
A tailor from Moradabad in UP, Kumar moved to Noida in 2014 in search of better prospects, and began working in a textile factory for about Rs 8,000 a month.
More than a decade on, his salary has risen to roughly Rs 13,200. This is still below the revised minimum wage for skilled workers in Noida, which, from April 2026, ranges between Rs 15,224 and Rs 16,868, depending on the district.
Across factories and construction sites, workers say the latest wage hikes may offer limited relief, given rising living costs, patchy implementation and the preference for contractual employment.
In Noida, Amrez Khan, who works in an e-battery manufacturing unit, expects his income to rise from Rs 12,000 to around Rs 14,000-Rs 15,000.
The increase will largely go towards supporting his family in Madhya Pradesh. I may be able to send home Rs 8,000 instead of Rs 6,000, but it doesn't change much for me," he says, adding that the revised wages won't really translate into real gains.
Rising Living Costs Pressure
In Manesar, Gurugram, Harish Tiwari, a cutter in a steel factory, earns about Rs 13,000 a month.
With room rent (Rs 1,000), school fees for his two children (Rs 3,000), additional coaching expenses (Rs 1,400), and groceries, most of his income is already spoken for.
A 35 per cent wage hike announced by the Haryana government could raise his earnings to around Rs 18,500, but he remains uncertain about its implementation.
Besides, workers like him have to make contingency plans, too.
"I work as a cutter; there are injuries, but medical expenses are rarely covered despite the risks at work. I have to plan for emergencies," he says.
Among daily wage workers, the concerns are even sharper. At Manesar's labour chowk, which saw protests last week, workers say higher wages could in effect mean fewer days of employment, with factories hiring less number of workers to do the job.
"We used to get 15 to 18 days of work. Now we haven't been called back even though the protest ended almost a week ago," says Meena Devi, a worker from Bihar.
Others worry that contractors may cut back on hiring to manage higher wage bills, leaving overall incomes unchanged.
Labour Law Violations
Trade unions point to structural gaps that limit the effectiveness of wage hikes. Basic facilities mandated under labour laws are often missing, adding to workers' expenses, they allege.
"Factories with over 100 workers are supposed to provide subsidised meals, but most don't – not even the large ones" says Rakesh Kumar, Delhi president of the Indian National Migrant Workers' Union.
Workers across Noida, Manesar and Delhi report bearing food costs themselves.
"We barely even get tea. If they give us food, money for it is deducted from our daily wage," says a construction factory worker in Noida.
For most workers across the region, overtime is a key source of supplementary income, but they say it is inconsistently paid.
"For each extra hour we put in, we are entitled to double the payment, but no factory follows this rule," says a worker in Noida's industrial hub.
Like the workers, union leaders maintain that even the revised minimum wages fall short of what is needed.
Elamaram Kareem, general secretary, Centre of Indian Trade Unions (CITU), says the minimum wage scheme is essentially for smaller factories, which cannot afford to pay more than that.
"Over the minimum wage, there is the concept of 'fair wage' and 'living wage'. But no large factory -- no matter how high its turnover – is willing to go beyond the minimum wage," he says.
The growing reliance on contractual hiring further weakens worker protections.
In Noida's garment sector, unions estimate that nearly 80 per cent of workers are employed on contracts, often without access to provident fund, annual increments or medical benefits.
"The nature of work in factories like textile and electronics is permanent. You require specific skill-sets. But hiring is still contractual because it is cheaper for the factory and helps avoid responsibility toward the employee," says Naim Ahmed, district secretary, All India Trade Union Congress (AITUC).
Given the prevailing scenarios, Dinesh Kumar expects only a modest improvement in savings.
He also remains cautious.
"No one in my factory gets the minimum wage," he says, adding that his rent has risen from Rs 1,500 to Rs 5,000 over the past seven years, and he spends about Rs 6,000 a month on groceries.
His last raise (Rs 500 a month), came nearly two years ago. To cope, he works an additional two to three hours daily beyond his eight-hour shift.
Even if the revised wages are implemented fully, any increase, he fears, will be absorbed by essentials such as cooking gas -- which, with the war in West Asia, is an altogether different story.
Feature Presentation: Aslam Hunani/Rediff
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