Haryana has increased minimum wages by 35% for unskilled workers following factory protests and work boycotts driven by higher living costs, surging food prices, and disrupted gas supplies. The government says the move will ease pressure on labourers, but industry expects it to raise operating costs for India’s auto sector.
Uttar Pradesh announced an interim minimum wage revision effective April 1, 2026, for unskilled, semi-skilled, and skilled workers. Noida and Ghaziabad workers get the highest increase of 21%, while other districts are slated for near 15% and 9.21% hikes depending on category. The government also clarified that a proposed Rs 20,000 statewide minimum wage is untrue.
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A FED report released Thursday argues that India’s high minimum wage floors are slowing down the creation of formal jobs. It says workers should be able to negotiate wages freely, while the government should allow regional flexibility in the national floor wage to reflect local realities and avoid shutting out poorer states from formal employment growth.
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