IT Wage Recoveries Surge 174% to Rs 49.16 Crore Over Past Five Years

Recoveries from labour claims in the IT sector have surged by 174% over a five-year period, rising from Rs 17.97 crore between 2016-17 and 2020-21 to Rs 49.16 crore between 2021-22 and 2025-26, according to official data submitted by the Union Ministry of Labour and Employment in the Rajya Sabha.

The sharp increase in recovered wages comes amid growing concerns among information technology employees in Hyderabad and across the country regarding long working hours, unpaid overtime, and arbitrary terminations.

The claims filed by workers primarily involve violations such as payments below the prescribed minimum wage, non-payment of wages for work done on designated rest days, and unpaid overtime dues. These claims were submitted under various labour legislations, including the Minimum Wages Act of 1948, which mandates the baseline pay rates that employers are legally required to provide to both skilled and unskilled workers.

According to the ministry's data, the Rs 17.97 crore recovered during the 2016-17 to 2020-21 timeframe was collected from 7,817 establishments. In the subsequent five-year period from 2021-22 to 2025-26, the Rs 49.16 crore was recovered from 7,852 establishments. While the amount recovered increased by 174%, the total number of establishments involved rose by just 0.4%.

The presented figures reflect only establishments that fall under the central government's labour enforcement jurisdiction. Establishments and disputes that come under the jurisdiction of state labour authorities were excluded from the data set.

Commenting on the findings, C Vinod Kumar, president of the Forum for IT Employees, noted that the official numbers represent only a fraction of the broader workplace issues in the sector. He stated that many employees do not file formal claims despite working beyond their legally prescribed working hours.