Gurgaon: Industry bodies have been jolted by the Haryana govt’s “abrupt” 35% minimum wage hike and its immediate implementation from April 1, a move they say has put businesses “in the dock.”They caution that the move will strain cash flows, push some units towards sickness and could discourage future investment and expansion in the state. Many MSMEs may be pushed towards “closure”, they have pointed out.They argue the revision should have been introduced in a staggered manner after proper consultation. With companies set to prepare April salary slips by midmonth, they fear the limited timeframe will trigger confusion and mistrust between workers and management.Industry representatives warn that the actual impact on salary outgo will be nearly 45% because ESIC, PF, bonus, gratuity and other statutory components are all linked to the basic wage. The revised rates now exceed those in neighbouring states such as UP, Rajasthan and Punjab, squeezing margins and eroding Haryana’s competitive edge.President of Gurgaon Chamber of Commerce & Industry Vikas Jain said the hike should have been implemented in a “better and planned way.” “The industry should have been given time. We just closed the financial year. Administrative work requires preparation,” he said, adding that future revisions must follow detailed dialogue with industry. “This will — overall wage bills — impact cash flow, working capital, operational costs and margins and might push some industries to the brink,” Jain said.Secretary general of the chamber SK Ahuja pointed out that minimum wages in neighbouring states like Rajasthan, Punjab and UP remain in the range of Rs 11,000-12,000. “Minimum wage in Haryana is now on the higher side. Haryana is also landlocked and has higher logistics costs compared with states like Maharashtra and Gujarat with ports. All this dilutes our competitive advantage,” Ahuja said.Chairman of Progressive Federation of Trade and Industry (PFTI) Deepak Maini said the steep hike is particularly damaging for MSMEs. He noted that once statutory liabilities such as EPF, ESI, bonus and gratuity are factored in, the additional burden per employee could rise to nearly Rs 7,000.He added that with production costs and raw material prices already rising, a sudden one-time hike may push many MSMEs towards closure, affecting both industry and employment. Maini also warned that the manner of implementation could compel industries to shift to other states, hurting Haryana’s competitiveness and investment climate. “We suggested that the increase be implemented in phases over five years to avoid sudden financial pressure,” Maini said.
