Wage hike protests: Noida’s 10-year minimum pay rise half of Delhi, Gurugram; not enough to offset inflation

NEW DELHI: While minimum wages for unskilled workers have risen by just 42% in Noida/Ghaziabad over the last decade, the increases in neighbouring Delhi, Gurgaon and Faridabad have been close to 90%, shows data.

This also means that while wage increases have outpaced inflation in Delhi and its neighbouring Haryana towns, the hike has been not even enough to offset price rise in Noida/Ghaziabad.

Analysis of past data on minimum wages shows that from Rs 7,936 per month in Oct 2016, the minimum wage for unskilled workers employed in shops and establishments in Uttar Pradesh has increased to Rs 11,314 per month, an increase of 42.6%.




Since 2016, the base year of the consumer price index for industrial workers (CPI-IW), the increases in prices in Ghaziabad and Gautam Buddha Nagar have been 51.3% higher than the increase in nominal minimum wages. In effect, therefore, the real minimum wage now is lower than a decade ago.

The situation was similar in Haryana, before the increase in minimum wages announced on April 9, following protests in the state's industrial belts around Manesar. The minimum wage in the state had increased from Rs 8,070 per month in July 2016 to Rs 11,274 per month before April 9. This 40% increase was lower than the rise in prices rate affecting industrial workers during this period - 52.7% in Gurgaon and 48.1% in Faridabad. Following the April 9 hike, the minimum wage is now 88.6% higher than in 2016.

Delhi has the highest minimum wage in the NCR region. At Rs 18,456 per month, the minimum wage in the national capital has increased by nearly 90% as compared to Rs 9,724 per month in Oct 2016.



Interestingly, the national capital also saw somewhat lower inflation during this period than its satellite towns in Haryana and UP, as consumer prices for industrial workers increased by 43.7%.
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