Haryana hikes minimum wages 35% after unrest linked to Iran war cost pressures: Report

One worker at auto parts maker Munjal Showa said prices had nearly doubled in recent weeks, straining household budgets.

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Haryana has ordered a sharp 35 per cent increase in minimum wages following days of worker protests and factory disruptions triggered by rising living costs linked to the ongoing West Asia conflict, Reuters reported.

The state government has raised the monthly minimum wage for unskilled workers to about $165 from roughly $120, with effect from April 1.

The move is aimed at easing pressure on workers but is likely to add to cost burdens for the automobile sector, which is already grappling with higher input prices and supply chain disruptions.The decision follows unrest in Manesar, a key industrial hub near New Delhi that houses major manufacturing units, including those of Maruti Suzuki and several auto component suppliers. Police had clashed with protesting workers, while production was disrupted across multiple factories.Workers cited a sharp rise in daily expenses, particularly food costs. One worker at auto parts maker Munjal Showa said prices had nearly doubled in recent weeks, straining household budgets.

India, one of the world’s largest importers of liquefied petroleum gas, is facing a severe supply crunch, with the government diverting fuel supplies to households. This has pushed up costs for industries, eateries and small businesses, and led to an outflow of migrant workers from industrial clusters like Manesar.

According to the report, automakers such as Tata Motors and Mahindra & Mahindra have already raised prices, while Maruti Suzuki has indicated a similar move may follow.

Industry representatives said companies are taking interim measures, including providing meals and small incentives, to retain workers. Vinod Kumar, president of the India SME Forum, said the group has sought government support for emergency steps such as community kitchens, warning that labour shortages could worsen if workers continue to leave.

A state official also urged workers to return to their jobs, with some factories reporting a gradual resumption of operations after the wage hike announcement.