Behind the Glitz: The Living Wage Crisis in Delhi NCR
by Nidhi Kaicker, Research Affiliate with the Anker Research Institute Researcher Network, and Kuriakose Mamkoottam, member of the Anker Research Institute Research Network
Referring to the Benchmark Report: Living Wage Report and 2024 Update for Delhi- NCR, India
Unveiling the Ground Realities
The air inside a bustling warehouse was thick with the scent of cardboard. Dozens of workers moved rhythmically amid the constant hum of conveyor belts and platform trucks. A logistics company in Noida was our first stop, where we set out to understand the lives of workers living on the city’s minimum wage. In the midst of (organized) chaos, we spoke with several workers, but convinced one of them, with cautious resolve, to take us to his residence, which also gave an opportunity to interact with his family members, and to get a more informed understanding of the living conditions.
What we encountered was an eye-opener. Just a short distance from the gleaming corporate towers of Noida lay a sprawling slum where families lived in cramped, dilapidated dwellings. In one such settlement, a 12-by-12-foot room made of flimsy, kutcha materials barely sheltered the family. In many cases, entire families were forced to share these tiny spaces, often without adequate ventilation, natural light, or privacy. Basic amenities, such as regular water supply and electricity, were unreliable or entirely absent. Cooking was done outside on makeshift stoves, and a lone water tanker served as the daily rendezvous point for residents queuing up with their buckets. Nearby, a communal toilet area was all too familiar: a place where the stench of neglect mingled with the sounds of children and stray dogs fighting for scraps. Such stark inequality—where the promises of urban development in sharp contrast with the grim realities of daily survival—resonates deeply in a city celebrated for its progress.
The housing crisis was further compounded by lack of affordable rental options. Out of 121 rented houses inspected during our study, 84 were located in slum areas. Monthly rental rates for a one-room unit ranged from Rs. 1,500 to Rs. 5,000. However, for a dwelling to be deemed “acceptable,” the cost would exceed Rs. 5,000 per room—a figure far beyond the reach of most low-wage workers. The living conditions were not only physically inadequate but also reflected the broader socio-economic disparities rampant in the region.
The Methodology and Scope of the Study
An intensive living wage benchmark study carried out in the National Capital Region (NCR) of Delhi, based on the Anker Methodology®, sought to estimate the living income and living wage necessary for a decent life in one of India’s most economically dynamic regions. Combining qualitative insights from field investigations with quantitative data gathered from reliable sources, the research presents a holistic picture of the economic challenges faced by low-wage workers.
To ensure a comprehensive analysis, our study used a judicious blend of secondary and primary data. Secondary data sources included the NSSO (2022–23), Census (2011), CMIE-CPHS (2023), NFHS (2019–21), and PLFS (2022–23). These provided a broad overview of socio-economic indicators and labour market trends across the NCR. However, numbers alone do not tell the whole story; field investigation plays a crucial role. We conducted intensive fieldwork in two key districts: Gautam Buddha Nagar (in Uttar Pradesh) and Gurugram (in Haryana). These districts, part of what is known as Central NCR (CNCR), are vital to the region’s industrial and urban growth. They serve as hubs for diverse sectors—from IT and electronics to pharmaceuticals and automobiles. In CNCR, cities like Noida and Gurgaon (now Gurugram) have become synonymous with rapid economic development, attracting workers from many states across the country.
In 2023, our research team visited 171 households: during September-December in Gurugram and during November in Gautam Buddha Nagar. We visited the houses of these workers, and the market areas where workers and their family members purchase food items and other requirements, schools where children of workers attend, and healthcare facilities in the neighbourhoods used by workers and their families. Our study primarily focuses on the living costs of workers employed in establishments in these areas, and most of them reside in urban neighbourhoods (often urban slums) near their place of work.
The findings were as stark as they were sobering.
Wages: The Numbers Tell a Grim Story
A central component of our study was to compare the minimum wages prescribed by the respective state governments with the living wages that were estimated by us. In Delhi, the minimum wages for unskilled, semi-skilled, and skilled workers are at approximately Rs. 17,494, Rs. 19,279, and Rs. 21,215 per month, respectively. In contrast, Haryana and Uttar Pradesh report significantly lower minimum wages for unskilled workers around Rs. 10,924 and Rs. 10,275, respectively.
Yet, these figures fall woefully short of what is needed to afford an acceptable standard of living in the NCR. Living wage was estimated by assessing the cost of the constituents of decent living (nutritious and balanced diet, healthy and safe housing, non-food-non-housing (NFNH) expenses, and contingency expenses). Rs. 22,494 ($270) per month was estimated as the living wage that needs to be earned by a worker during normal working hours in Gurugram and Gautam Buddha Nagar districts to lead a basic but decent life supporting a typical family (of 4 persons in the case of Delhi-NCR).
The living wage estimated by us for Delhi-NCR district is 3.2 times the national urban poverty line wage, and 3.7 times the international poverty line wage for India. It is 1.6 times the prevailing wages for casual workers in Delhi, and 1.7 times and 2.1 times the prevailing wages for casual workers in Haryana and Uttar Pradesh. It is more than twice the minimum wage for unskilled workers in Haryana and Uttar Pradesh, and 30% higher than the minimum wage for Delhi. Our estimate is 74% higher than the minimum wages for skilled workers in Haryana and 78% higher than the minimum wage for skilled workers in Uttar Pradesh, 17% higher than the minimum wages for semi-skilled workers in Delhi and 6% higher than the minimum wages for skilled workers in Delhi.
Economic Disparities Amid Urban Growth
NCR, sprawled over 55,083 square kilometers, includes the National Capital Territory of Delhi along with districts from Haryana, Uttar Pradesh, and Rajasthan. Since its creation in 1985, the region has evolved into an inter-state development hub. However, its growth has been uneven. While some areas, like Central NCR, have flourished with industrial clusters and modern infrastructure, others lag far behind. The stark contrast between glistening high-rises and impoverished slums is a daily reality in this urban mosaic.
Gurugram and Gautam Buddha Nagar, in particular, illustrate this duality. Gurugram, known as “Cyber City” or “Millennium City,” is a magnet for IT companies and multinational corporations. Similarly, Noida in Gautam Buddha Nagar has emerged as a prominent industrial hub, especially for the semiconductor industry. Yet, amid this prosperity, a significant portion of the workforce struggles to make ends meet in substandard living conditions.
Our study highlights how these disparities are not merely statistics but real human experiences. The workers we met—those who toil tirelessly in warehouses, factories, and offices—often reside in conditions that are a stark antithesis to the thriving urban environment around them. Their stories reveal a pressing need for comprehensive policy interventions.
Conclusion
Our living wage benchmark study, based on rigorous data analysis and first hand field investigations, underscores the urgent need for a re-evaluation of wage policies and housing initiatives in the region.
The economic progress of Delhi NCR has been nothing short of remarkable. However, the prosperity that has fuelled rapid industrial and urban growth has not trickled down to the lower socio-economic levels. Behind the glistening facades of corporate offices and luxury apartments, millions of workers continue to live in conditions that are both degrading and unsustainable.
Our living wage benchmark study, based on rigorous data analysis and first hand field investigations, underscores the urgent need for a re-evaluation of wage policies and housing initiatives in the region. It is a stark reminder that economic growth must be inclusive—benefiting not just the affluent but also the millions of workers who form the backbone of the urban economy.
By drawing attention to these challenges, we hope to spark a broader dialogue among policymakers, industry leaders, and civil society. Addressing these issues is not only a matter of economic policy but a moral imperative. In the words of one worker, “Hope remains that someday, the promise of a decent living will not be a distant dream but a reality for all who call Delhi NCR home”.
Bridging this gap, of course, requires a concerted, collaborative effort—one that recognizes the human face behind every statistical number and builds a future where progress is measured not just by skyscrapers, but by the dignity of the citizen.
Nidhi Kaicker is an Assistant Professor of Management at Dr BR Ambedkar University Delhi. Nidhi is also a research affiliate with the Anker Research Institute, and has been associated with ARI since 2016. She has been a part of various living wage benchmarking studies using the Anker Methodology in India.
Kuriakose Mamkoottan is a postgraduate and doctorate in Sociology from the Delhi School of Economics, University of Delhi. Since 2015 Mamkoottam has been interested in the Anker Living Wage Benchmark methodology and has been actively engaged in assessing living wages and living income for workers in different parts of India.
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Views expressed are the authors. The opinions expressed here belong solely to the author and may or may not reflect the views of Anker Research Institute.
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