Factory Wages Rise Across India in FY25 Even as Jharkhand Sees Rare Drop

Jharkhand was the only state in the 2024-25 period where factory workers were paid less on average compared to the previous year, with government data showing a drop of 5.2%. Nationally, factory wages rose by 5.3% to reach Rs 2.28 lakh, up from Rs 2.16 lakh in 2023-24, according to the Annual Survey of Industries released on Wednesday.

Industrial Growth

The total number of factory workers across the country grew by 7.3% to reach 1.67 crore, while the count of factories went up by 2.6% to 2.7 lakh units. This marks the first time in over ten years that India has seen the number of factories grow by more than 2% in consecutive years. Tamil Nadu kept its position as the state with the highest number of factories and workers, while Uttar Pradesh became a main driver of industrial expansion with a 12.8% increase in factory units and a 14% rise in workers.

State Details

Even with the drop, factory workers in Jharkhand still earn far more than the national average, taking home an average wage of Rs 3.04 lakh in 2024-25. This placed the state third behind Sikkim at Rs 4.06 lakh and Goa at Rs 3.14 lakh. The recent dip appears to be a correction following peak wages in earlier years, which drew more workers to the state and pushed employment up by 9% to 2.08 lakh. Meanwhile, neighboring Bihar saw the biggest jump in average wages among major states at 16.7% to reach Rs 1.63 lakh, driven by a 2% drop in worker numbers.

Context

The Annual Survey of Industries is conducted by the Ministry of Statistics and Programme Implementation to track the formal manufacturing sector in the country. Data from these surveys help shape government policy and are used to calculate the national GDP.