India Biannual Construction Market Report 3Q/4Q FY2025
Labour rate trends
Rate trends
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
Note: All the rates represent basic rates in INR/day and don’t include any dearness allowances, uplifts for abnormal working conditions, contractor margins or taxes. Rates have been collated by Gleeds.
The construction labour market in India continues to face upward pressure on wages due to high demand and limited supply. While the rate of increase has moderated, the overall trend of rising labour costs persists, reflecting the ongoing dynamics of the industry.
Historically, construction labour prices in India have shown a steady upward trend. The trend of rising labour costs has been consistent over the past decade, with an average annual increase of about 7% in the last year — circa 1% higher than the annual headline inflation. This long-term trend reflects the ongoing challenges in balancing labour supply and demand in the construction sector.
Comparing the recent trends to historical data, the increase in labour prices in FY2025 also aligns with the broader pattern of rising costs. With the recent government announcements on increasing variable dearness allowance (VDA) to account for inflationary pressures, labour rates are expected to go up by 2.4 basis points beginning in October 2024.
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