Blue-collar wages rise 5–6 percent annually as industries focus on pay equity and skilling: Deloitte report

• The blue-collar sector faces a skill gap, with 5–7 percent attrition, 3 percent workbench rates and frequent absenteeism.
• Salary growth is being led by sectors such as healthcare (8 percent), e-commerce (7 percent) and manufacturing and engineering (6 percent), followed by construction and real estate at a 3.5 percent increase.
• Technician, worker and operator roles account for more than 60 percent of the current demand in the blue-collar workforce.

National, 15 May 2025: Industries in India are transforming digitally and expanding capacity, leading to significant changes in compensation and workforce strategies for blue-collar employees. Deloitte’s Blue-Collar workforce trends 2025 reveals that blue-collar wages are now growing at an annual rate of 5–6 percent, with many companies offering performance-based incentives to attract and retain skilled talent. The survey emphasizes the need for competitive, future-ready compensation structures to address rising talent demand, automation-induced job transitions and increasing workforce aspirations.

In 2025, hiring intent for blue-collar roles rose 10 percent, reflecting a strong demand for skilled talent across key sectors such as manufacturing, automotive, e-commerce and logistics. The report further highlights that the wage growth is keeping pace with this demand. Sectors such as automotive, metals and mining and chemicals are seeing steady salary increases of about 6 percent, driven by investments in automation and production capacity. The e-commerce sector is poised for the highest wage growth at 7 percent, fuelled by the continued expansion of last-mile delivery networks, warehousing and logistics infrastructure.

The report highlights promising strides in technology and formalisation, while underscoring wage and inclusion gaps in the workforce. Only 2.3 percent of blue-collar roles pay over INR60,000 per month, often reserved for highly experienced or specialised workers. Meanwhile, average wages for female employees are just 0.70 times that of their male counterparts, underscoring the need for more equitable compensation practices. The disparity is most pronounced in physically intensive, non-ITI roles. Persistent gaps in wage standardisation, along with the critical need for workforce reskilling and upskilling, continue to challenge industry-wide compliance and tech-readiness efforts.

As India positions itself as a competitive global manufacturing and innovation hub, the road ahead calls for industry-wide collaboration, integrated skilling ecosystems and stronger alignment with labour and regulatory frameworks. To scale sustainably and responsibly, businesses must prioritise deeper interventions in wage standardisation, gender parity and workforce development. The report urges companies to adopt more inclusive compensation strategies and make long-term commitments to improving working conditions and career mobility for India’s 300-million-strong blue-collar workforce.

About the survey

The report offers a data-driven perspective on India’s blue-collar ecosystem. It covers over 15 industries, with participation from over 200 companies and insights gathered from more than 300 manufacturing plants. The pan-India study spans the five regions of the country, making it one of the most comprehensive assessments of workforce trends, challenges and emerging priorities across sectors such as automotive, FMCG, pharmaceuticals, chemicals and metals.