Industrial associations across Haryana have expressed serious concern over the state government’s recent decision to significantly increase minimum wages, warning that the move could threaten the viability of thousands of Small-Scale Industries (SSIs) and Micro, Small, and Medium Enterprises (MSMEs).
Industry bodies from Gurugram and Faridabad have written to the state’s Industry Minister, seeking an exemption for MSMEs and urging a review of the notification. They argue that the sudden financial burden is unsustainable in the current economic environment.
According to industry leaders, the announced wage hike — averaging around 35% across various labour categories — will have a cascading impact on production costs. When statutory contributions such as the Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), and annual bonuses are factored in, the overall operational costs for small units are expected to rise by at least 45%.
Deepak Maini of the Progressive Federation of Traders and Industry (PFTI) expressed concern over the timing and scale of the revision. “The MSME sector is already struggling with high raw material costs and global competition. A 35% hike in minimum wages is unprecedented. When you add the overheads like EPF and ESI, the operational costs for a small unit will jump by at least 45%,” Maini said. “We are not against the welfare of workers, but the government must understand the paying capacity of small units. We urge the government to exempt MSMEs or implement the hike in a phased manner.”
The Gurugram Industrial Association (GIA) highlighted that industrial hubs such as Gurugram and Manesar, which host thousands of auto-component manufacturing units, are particularly vulnerable. Many of these units operate on thin margins and are bound by long-term fixed-price contracts with large Original Equipment Manufacturers (OEMs).
A spokesperson for the GIA warned, “If our operational costs rise by 45% overnight, we cannot simply pass that cost on to the buyers. Many units will become unviable and may be forced to shift to other states with more competitive wage structures or shut down entirely, leading to mass unemployment.”
The industry bodies have submitted a memorandum to the state government seeking an immediate review of the notification. They have proposed a tiered wage structure under which small-scale industries would have a lower wage floor compared to large corporations and multinational companies.
Meanwhile, the state government has maintained that the wage hike is necessary to offset inflation and improve the living standards of workers. However, with industry stakeholders warning of a potential slowdown, pressure is mounting on the administration to find a balanced and sustainable solution.
