India Pushes for Higher Wages for Workers in Gulf


NEW DELHI/DUBAI/RIYADH, Nov 17 (Agencies) : India is pressing rich countries in the Gulf to raise the wages of millions of Indians working there, in a drive that could secure it billions of dollars in fresh income but risks pricing some of its citizens out of the market.

Over 5 million Indian nationals are believed to be employed in the oil exporting states of the Gulf, the single largest group in a migrant worker population of more than 20 million.

Migrants do many of the dirty and dangerous jobs in the region, from construction to the oil industry, transport and services. They account for nearly half of the roughly 50 million population of the six-nation Gulf Cooperation Council.

Over the past seven months, Indian diplomats in Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates have sharply increased the minimum salaries that they recommend for Indian workers at private and public firms in those states.

"We want the Indian workforce to be paid higher salaries. Inflation, the value of the Indian currency and a rise in the cost of living in the Gulf were the factors that led to the decision," Y.S. Kataria, a spokesman for the Ministry of Overseas Indian Affairs (MOIA) in New Delhi, told news agency Reuters.

The success of India's strategy is not yet clear, however.

"Of course it will encourage companies to look at Bangladesh and Pakistan as more viable options to get migrant workers," said Mohammed Jindran, managing director of UAE-based recruitment agency Overseas Labour Supply.

The Indian government cannot dictate the pay of its citizens in the Gulf - decisions to hire workers are made by labour recruiters in individual countries, which have not set minimum wages for migrants and usually prohibit union activity by them.

However, the recruiters must rely on the co-operation of local authorities to operate in India. An internal memorandum prepared by the MOIA, sent last month and seen by Reuters, says that if workers are offered wages below specified minimums, ministry officials "would deny emigration clearance".

Even when Gulf recruiters agree to certain wage levels, the numbers do not necessarily stick. Some workers are promised one salary when they sign up in their home country, then forced to renegotiate lower wages when they arrive in the Gulf.

Another MOIA official said India's pay demands had met initial resistance in all six GCC countries, while two of the countries had threatened to reduce their Indian workforces and hire more, lower-paid workers from Bangladesh and Nepal instead.

If India's efforts to secure higher pay succeed, they could boost its economy, because migrants send much of their pay home. India received $69 billion as remittances in 2012; a 2010 central bank study found Gulf nations accounted for 31 percent.

Higher wages could also impact many companies. Fawwaz al-Khodari, chief executive of Saudi builder Abdullah Abdul Mohsin al-Khodari, said profits in the sector might be squeezed by demands from governments of some labour-exporting countries.

"In cases where salaries have been 800 to 900 riyals, we are now hearing talk of 1,500 riyals as a minimum salary, which is a huge increase...Clearly this would become a major issue in the contracting industry."

  

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Comment on this article

  • Harish Hegde, Mangalore/Aramco

    Tue, Nov 18 2014

    i will tell you'll why the salary doesn't go up... as long there are Keralite in a company in accounts or in high position then there is no question of pay rise infact the salary will be cut, but their salary will go up. I am talking the truth. In Bahrain a big Cypriot construction company use to pay a good salary some of the keralite got into accounts since then the salary was cut.

    DisAgree [2] Agree [6] Reply Report Abuse

  • Krishna Kant, Mangalore/Moodbidri

    Tue, Nov 18 2014

    Our people in India too get's less salary, so how about us?

    DisAgree [6] Agree [2] Reply Report Abuse

  • Sujith Nayak, Kudla / AUH

    Tue, Nov 18 2014

    Yeah Guys.... Henry Misquith, Bahrain & Romith, Mangaluru is one person. God alone knows how many such people are on this forum just for the sake of commenting....

    DisAgree [2] Agree [3] Reply Report Abuse

  • macho, mangalore

    Tue, Nov 18 2014

    This is already implemented in UAE, if you are employing any Indian who needs emigration clearance, after his visa is issued we need to get it attested it in INDIAN EMBASSY, where they have clear slab for each job category, EX:Helper salary should be 1000 AED TRANSPORT ACCOMMODATION FOOD ALLOWANCE.
    This as implemented just a month back after our minister visited UAE

    DisAgree [6] Agree [15] Reply Report Abuse

  • Peter Lewis, Brahmavar/Sharjah

    Tue, Nov 18 2014

    First of all Indian authorities should have common sense because least paying companies are with Indian Management. There are owners those who calculate Indian rupees and paying to the workers.

    DisAgree [4] Agree [43] Reply Report Abuse

  • vivek, herebile / abudhabi

    Tue, Nov 18 2014

    truly said Dear Peter...Indian them self spoiled the future of Indians here...

    DisAgree [3] Agree [23] Reply Report Abuse

  • CLITUS, doha

    Tue, Nov 18 2014

    Yes...Stupid Indian Management calculating the current currency value and spoiling Indian Image. I truly agreed with Peters comments on this. We need to make standard salary for the poor labors like Philippine Embassy high standard salaries

    DisAgree [1] Agree [11] Reply Report Abuse

  • rizwan, Dubai/Mangalore

    Tue, Nov 18 2014

    SWAMY, UNDU ITTINA BELELA DEPPUNA PANCHATHIGE MARAYERE !!!

    DisAgree [3] Agree [12] Reply Report Abuse

  • Peter lewis, kalmady/k s a

    Tue, Nov 18 2014

    The situation of gulf employees now a days they can not leave permanently from here nor stay permanently in home country. still many companies not correct their visa status of employees. paying meagre salary, can not fulful a small families expenditure in home country. saving is impossible.

    DisAgree [2] Agree [10] Reply Report Abuse

  • steven, dxb

    Tue, Nov 18 2014

    Now Gulf workers are waiting black money to return India so we can get share into our account and no need to come back to gulf work in the desert.will Modi bring us or cling from us is question.

    DisAgree [4] Agree [15] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Tue, Nov 18 2014



    It is a positive development from our present government.

    I hope GCC countries will take serious note of workers apathy and try to enhance or introduce reasonably minimum salaries for domestic workers.

    They may come to terms to consider giving better salaries rather than bringing labor force for cheap from African or regional countries for fear of non-trust worthy and criminal culture they are breeding and endangering the lives of Arabs. I am ashtonished to see such a huge Indian community/population in Kuwait and enjoying the freedom of life. I am one of them. Thanks to the provider.

    DisAgree [1] Agree [11] Reply Report Abuse

  • Ahmed, Mangaluru

    Tue, Nov 18 2014

    Rita, Germany,
    Don't know what made you to comment on my comments. May be you want to say that if Indian don't take up the jobs in Gulf for the salaries offered, then some other nationalities will grab the opportunities. That's alright. Today, Indian salaries almost equal to Gulf salaries. I will be happy if no Indian labors will have to leave India for jobs abroad. I will be happy if India can fulfil the needs of all Indians within India.

    DisAgree Agree [19] Reply Report Abuse

  • jimmy noronha, Bellore/Lucknow

    Tue, Nov 18 2014

    When oil prices were coming down in 1986, I remember many workers from Muscat were sent home. Now that there is a slide downwards in oil prices, it might not be in the interest of workers to ask for higher wages in the Gulf.

    DisAgree [2] Agree [7] Reply Report Abuse

  • KRPrabhu, Bengaluru

    Tue, Nov 18 2014

    All notorious sickular minded Modi haters specially from Gulf countries as well as from India are missing here now.........
    May be hiding in the rate hole!

    DisAgree [22] Agree [19] Reply Report Abuse

  • STANLEY Q., Mangalore

    Tue, Nov 18 2014

    This is not the right time to demand more wages from GCC countries for Indians.Oil prices are down and the Arab Rulers/Industrialists in GCC Countries are looking for ways to cut costs.This is very likely to Backfire as they will hire cheap labour from Nepal,BanglaDesh etc.

    DisAgree [8] Agree [12] Reply Report Abuse

  • Charles D'Mello, Pangala

    Tue, Nov 18 2014

    First of all let our India decide our Indian wage structure and let them poke their nose internationally. Way back in 1986 I had worked as a Lecturer in an Engineering college for 1850 rupees (after completing Engineering degree). where as a daily wage coolie was getting 125 rupees a day with a posh lunch and evening coffee with snacks or two pegs a day.

    DisAgree [7] Agree [20] Reply Report Abuse

  • prakash, dubai

    Mon, Nov 17 2014

    Dear Peddu,
    I completely agree with your point. But who will tell this to Indian those want jobs in Gulf. I feel media need to highlight strongly like swatch Bharath in India..Also encourage new jobs in India

    DisAgree [1] Agree [10] Reply Report Abuse

  • AFFECTED MANGI, Mangalore/UAE

    Mon, Nov 17 2014

    Peddu, you are right. Politics is a business for a few of them, who rule India in the name of Demography. Indians are forced to move out of India due to Indias failure to perceive "Make in India" for the past 65 years. They only pursued "trade for India" for filling their foreign bank accounts. Wake up guys, first make all activities transparent and online, accountable. Stop free bees, instead enhance the purchasing power of people by engaging them in the economy. Its a pity that our next generation has no future, so far. So I need to change, so the surrounding and then the whole country... Jai Hind.

    DisAgree Agree [3] Reply Report Abuse

  • Anil D.G., Mangalore

    Mon, Nov 17 2014

    All the promises made of generating jobs for Indians IN INDIA (Rozgaar for Bharatiyas) are proving to be a little difficult. Hence an effort is being made to make the Gulf pretty attractive to take up jobs over there. Never mind the pathetic work conditions that prevail in the desert states.

    More wages in the Gulf means more repatriation of cash and hence more dollar inflows to India. Smart business move. Gujaratis think ten times ahead..!! Never mind that the worst conditions that working-class people face are in companies run by Gujaratis, Marwadis and Sindhis, whether it is in the Gulf or in India.

    Let the incumbent government take steps to increase the wages in India itself. Let the Prime Minister tell Adanis and Ambanis to take the first step. Dare to do so?? No, he won’t. After all it will hurt the bottom lines of his business friends. So stop dictating to the international business holders.

    Last, but not the least, Gulf countries have options to get the cheaper labour force from so many different countries like Sri Lanka, Bangladesh, Nepal, Afghanistan and of course, Pakistan. Wait wait. What about our own darlings from our own backyard? You asked me who?? Well, the Keralites, my dear. Standards for cheap labour in the Gulf countries have been set up by people from Kerala since time immemorial. Even if the international community fixes the minimum wages as a standard, Keralites will strike deals to work for much lesser wages and destroy the whole dignity for labour. They have done it before and they will do it in the future. Oh, those Keralites..!!!

    Phew... Thank you for your kind attention.

    DisAgree [3] Agree [10] Reply Report Abuse

  • Imran Kaup, Dubai

    Mon, Nov 17 2014

    Reality is Reality !! News is just a news on paper Lots of difference on Theory and Practical !!!

    DisAgree [2] Agree [10] Reply Report Abuse

  • Dsouza Antony, Mangalore / Dubai

    Mon, Nov 17 2014

    if people decide dedicating 8 hrs of their time on the job they take and do a quality job, who says there is no job at our place, but we all take people for granted when they gives job to do, but going to middle east they learn skill and gain knowledge on the jobs they do.

    DisAgree Agree [2] Reply Report Abuse

  • Lydia Lobo, Kadri

    Mon, Nov 17 2014

    Its time, first to ask Indian business houses in Gulf countries, whether they are willing to raise the salary of their Indian staff. Many Indian companies pay peanuts to the staff, delay the payment and keep bond of one/two months salary as a guarantee so that the employee does not threaten to resign because upon which he will lose the bond. There may be Labour Department to complain but the employer will have enough evidence to prove that the complainant wrong.

    Secondly, these very Indian companies hire staff from a prominent Far East country, women of which are ready to do anything for money. They work for very low pay, live in hoards in one flat thus saving on high rents that Indians living with families incur. Whereas, in India there is shortage of labour, workers from Nepal, Bangladesh have flooded the market with hopeless quality of work.

    Therefore leave this enticement of future rise in salaries, prepare ground for creating employment in India and assure the citizens that there will be livelihood anytime they return. Simplify business establishment laws in India, reduce taxes, many Gulf Returnees will invest their money to be self employed.

    Indian Government can fool its citizens with 'Achche din aanewale hain' but they can't dictate a foreign nation over monetary benefit to Indians in that country, just as any foreign nation can't impose their rule in India. Example, enquire how foreign establishments are taxed in India !

    DisAgree [2] Agree [18] Reply Report Abuse

  • Alban D Souza, albande@yahoo.com

    Mon, Nov 17 2014

    The decision from Indian Govt is welcome. because the laour force in the gulf comparatively gets less salary and labours expect good salary. There should be a compromise with employers to raise the salary. India tops workforce working in the gulf. One can see that from low category up to management level Indians are shining by working sincerely and honestly . So also they must get and deserve the best salary if not better.

    DisAgree Agree [1] Reply Report Abuse

  • PEDDU, MANGALURU

    Mon, Nov 17 2014

    IN INDIA ONE COOLIE IS GETTING 300 RS MINIMUM WITH FOOD AND WORKING HOURS MERELY 5 HOURS AND NO RULES OR RESTRICTIONS !! THE SALARY IS GETTING HERE IN INDIA WHICH IS EQUIVALENT TO THOSE WHO ARE GETTING PRESENTLY IN GULF COUNTRIES!!

    AND INDIAN COOLIE IS MORE HAPPIER THAN THE GULFI COOLIE WHO SWEAT UNDER THE HOT SUN AND WORK 08 HOURS A DAY ! NO PUBLIC HOLIDAY !! NO SOCIAL LIFE !! NO FAMILY LIFE !! NO HOMELY FOOD !! AFTER TWO YEARS GOING FOR VACATION BY BORROWING SOME LOANS FROM HIS FRIENDS !!

    THE INDIAN WORKERS IS ALMOST A DONKEY WHO WORKS FOR OUTSIDE COUNTRY BUT ASHAMED TO WORK FOR HIS COUNTRY AND HE FAIL TO SHOW SAME SINCERITY TO HIS OWN COUNTRY BY DOING THE SAME JOB !! EVERYONE WANTS TO RICHER OR LEAD A DECENT LIFE BUT OUR OWN COUNTRY POLITICIANS FINISHED THE COMMON MANS LIFE AND FORCED HIM GO OUT FROM THE COUNTRY

    DisAgree [5] Agree [104] Reply Report Abuse

  • Kiran Raj, Mangalore

    Mon, Nov 17 2014

    Do not just announce it before you guys take a single step, instead announce it once you have accomplished your task...

    DisAgree [3] Agree [25] Reply Report Abuse

  • PEDDU, MANGALURU

    Mon, Nov 17 2014

    INDIA IS ITSELF BLESSED WITH SO MANY RESOURCES ONLY THE CURSE IS DIRTY POLITICS AND CORRUPTION !!!

    PLEASE DONT COMPARE INDIAN WITH PAKI OR BANGALI

    MAY BE THEY ARE READY TO WORK FOR 01 RS BUT STILL YOU CANT GET THE QUALITY JOB FROM THEM WITH SINCERITY !!

    DisAgree [3] Agree [50] Reply Report Abuse

  • Peter, Bangalore

    Mon, Nov 17 2014

    Is this possible ?

    DisAgree [3] Agree [15] Reply Report Abuse

  • Vishal D Souza, Mangalore

    Mon, Nov 17 2014

    This is Modi Magic. Of course Indians deserve good salaries because of sincere, calm workforce.

    DisAgree [32] Agree [31] Reply Report Abuse

  • sid, MLR/QTR

    Mon, Nov 17 2014

    There are lot of people who's payments are pending for 5-6 months please look into this!! embassy is useless...

    DisAgree [3] Agree [46] Reply Report Abuse

  • geoffrey, hat hill

    Mon, Nov 17 2014

    Arabs can very well recruit workforce from other Asian/Africans countries as well, for the same or even less salaries. If we Indians feel that we are exploited, we shouldn't take up the jobs in gulf. If they feel we are too good/skilled, certainly they'll come back to us with better deals.

    DisAgree [3] Agree [19] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Mon, Nov 17 2014

    It is true and I have watched in two GCC countries, in the very extreme hot weather, how these people were working and sweating to send money home.

    But, what is the logical right for India to demand certain salary level in a foreign country? It is an open truth that the same jobs when performed by the citizens of the western world is paid higher than the Easterners. But, no country can demand certain wage level in another country. Let the new Government as promised may create millions of decent jobs in India, instead of exporting the Indians abroad and demanding certain salary level for them.

    Since the oil price is plunging faster than anybody's expectation, the GCC countries are cutting corners in their budget and this unexpected demand may or may not backfire.

    If the GCC countries have plenty of labor force from other countries to work in lower salary, then the people of India are out of the show.

    In 2012, $ 69 billion was remitted by the Indian expatriates and out of that $ 27 billion was remitted by the people of Kerala. Along with the plunging rubber price, this can turn as a terrible economic shock for the so called "God's country" with the highest rate of alcohol consumption-divorce-con game etc etc in the nation. Christmas eve liquor consumption close to Rs. 2000 crore will make the liquor industry very happy. GCC is their oasis. 90% of the Indian rubber production is from Kerala.

    DisAgree [4] Agree [21] Reply Report Abuse

  • vivek, hirebile / abu dhabi

    Mon, Nov 17 2014

    yes!!.. Government should consider low salaried workers and it should rise voices for them...where Normally they will target rich residing in Gulf....if i suggest put heavy tax on high salaried people in Gulf and give some benifts and scheme for low salaried workers...

    DisAgree [10] Agree [4] Reply Report Abuse

  • romith, mangaluru

    Mon, Nov 17 2014

    Who are we to pressure other countries when in India itself, laborers are not paid properly. Have you seen the living conditions of laborers in India. There is a huge problem of child labor in India as well. We need to take care of this in our own country before pointing a finger at another country.. This is sheer hypocrisy.

    DisAgree [6] Agree [17] Reply Report Abuse

  • HENRY MISQUITH, bahrain

    Mon, Nov 17 2014

    Who are we to pressure Gulf countries when in our own India itself, laborers are not paid properly. Have you seen the living conditions of laborers in India. There is a huge problem of child labor in India as well. We need to take care of this in our own country before pointing a finger at Gulf or any other country.. This is sheer hypocrisy.

    DisAgree [4] Agree [16] Reply Report Abuse

  • Brijesh.c, Mangalore

    Mon, Nov 17 2014

    what about the people working India in private companies,MNC,local industries.People who work in these companies does'nt even get Rs7000 take home salary and no over time given,no specified lunch break time ,no duty timings even after 8 hrs of duty they have to still work more for the day,even if u give complaint for the labour dept they will not take any action against these companies because these are the companies which are run by our Indian politicians.They get huge profit from these companies every year but the wage rate of the employee remain the same.Govt also is not bothered because if they do anything their govt falls down from majority.So we r in 21st century and employee salary of private company is still not even Rs7000.What a shame and our govt is pushing the salary increase for gulf workers.First look Indian workers salary.

    DisAgree [3] Agree [15] Reply Report Abuse

  • John Tauro , M'lore / Kwt

    Mon, Nov 17 2014

    More than demanding higher wages, priority must be given for security of workers while they are in a distant land. Our Govt must take immediate steps to ensure that workers are protected from unscrupulous recruitment agents at home and abroad, ill treatment and harassment by employers, withholding wages and other benefits, confiscating passports, denying basic rights and facilities, termination on false charges, convicting without fair trial, etc.

    DisAgree [1] Agree [9] Reply Report Abuse

  • shaan, manglore/dubai

    Mon, Nov 17 2014

    Of course it will encourage companies to look at Bangladesh and Pakistan Workers and other countries too..
    It is NaMO's over action result millions will jobless soon...Acche din for Indian ahead lets books tickets..

    DisAgree [34] Agree [21] Reply Report Abuse

  • Vikram, Dubai

    Mon, Nov 17 2014

    you may be happy with your dirhams 800/- monthly salary but not all indians.

    DisAgree [8] Agree [24] Reply Report Abuse

  • shaan, manglore/dubai

    Tue, Nov 18 2014

    Vikram ,Dubai,
    In Gulf countries available all countries laborers with competitive way...be Indian I am happy if Indians get good salary...From pushes nothing will happen, it will encourage companies to look at other countries laborers ..that is only I said. Before pushing need better study of job market & analyst advise...for assure Indians Job secure...

    DisAgree [6] Agree [8] Reply Report Abuse

  • Stan, Udupi/ Dubai

    Mon, Nov 17 2014

    Let them concentrate on workers working in India rather than Indians working abroad. Then they will spoil the chances of Indians getting hired abroad. Let them generate job opportunities in India as promised during ELECTION TIME. Its shame that govt is asking for increase in salary than creating more opportunities there .

    DisAgree [12] Agree [28] Reply Report Abuse

  • Suleman Beary, Udupi

    Mon, Nov 17 2014

    Indian immigration rule made it almost impossible to hire domestic female servant to the Gulf citing harassment at work place. Indian market pays well for skilled workers which made them Gulf as less attractive.
    Higher cost of living, additional expenditure like compulsory high cost medical insurance to family members etc. made less saving.
    These affect have influence on Indian economy.

    DisAgree Agree [21] Reply Report Abuse

  • james.held, Udupi/Kuwait

    Mon, Nov 17 2014

    NaMo in action...JAI HIND

    DisAgree [18] Agree [32] Reply Report Abuse

  • vivian, dubai

    Mon, Nov 17 2014

    Today there are many labours have more knowledge than Europeans. These white skin people doesn't know anything still paid in huge salaries and our laboures knowing everything getting less than thousand Dhs salary. Good move by Indian Govt

    DisAgree [4] Agree [62] Reply Report Abuse

  • Ahmed, Mangaluru

    Mon, Nov 17 2014

    In last 30 years, Indian salaries for a normal worker have reached from Rs.500/- a month to now about Rs. 15,000/- a month today. Where as gulf salaries those days were around 1000 riyals and still they are around 1000 riyals. But, the difference is, according to exchange rate 1000 riyals those days would make Rs. 2,500/- and today 1000 riyals are equal to Rs.16,000/- So, today there is no much difference between Indian salary and gulf salary. Accordingly Indian workers in gulf surely deserve a better salary for the hard work and sacrifices for being away from home and family.

    DisAgree [2] Agree [84] Reply Report Abuse

  • Rita, Germany

    Mon, Nov 17 2014

    @Ahmad ,Mangaluru,you are comparing salarys about 30years back and today.but not only salarys ,but living costs are also increased today.you cant go to market today with 100rupees .but 30years back enough for a two persons .how much you have to pay for a KG seat as "donation"and everywhere today?compare things same way.There are People in gulf working for a small salary,housing but with many other in a small stuffed room.They dont have proper earnings,no security at work,agents swallow lot of Money to get a visa which some have to carry mothers or wifes Gold to bank.what if These agents sometimes just disappear?Some dream of big Money ,Gold wealth.but sadly later reality will be other than dreams.Not all are blessed with good payed Jobs.Arabs have learnt now ,if we dont take up the offered Job with small salry,there are other nationals like bangla chinese,philippinas ready etc even africans ready to take up for lesser salary.when we think of all These Troubles taken to get a visa,agents etc.some have no choice of take up the less salary Job.They are in a very bad Situation.there is no choice sometime so they can try to ask for more.Afterall arabs will not be going bankrott.Their Treasury is good filled up.

    DisAgree [4] Agree [2] Reply Report Abuse

  • Ahmed, Mangaluru

    Tue, Nov 18 2014

    Rita, Germany,
    Don't know what made you to comment on my comments. May be you want to say that if Indian don't take up the jobs in Gulf for the salaries offered, then some other nationalities will grab the opportunities. That's alright. Today, Indian salaries almost equal to Gulf salaries. I will be happy if no Indian labors will have to leave India for jobs abroad. I will be happy if India can fulfill the needs of all Indians within India.

    DisAgree Agree [8] Reply Report Abuse

  • Achhu, Mlore

    Mon, Nov 17 2014

    If the plan is successful then all will thank govt and elect same govt in the next election.if someone loses job because of this pressure then will the govt take care of him??

    DisAgree [1] Agree [33] Reply Report Abuse

  • Vellano1, Mumbai

    Mon, Nov 17 2014

    yes, why should it be cheap labour..? let them pay higher if they need good service..

    the badbolas in daiji should also start their DHARNA in gulf, asking for higher wages! akulu dakkuna mukkal kaas g daaye bele malpodu! ...Modi's acche din should be felt by these people too, even though they dont vote him there.. -)

    DisAgree [17] Agree [16] Reply Report Abuse

  • jeevan, mangalore

    Mon, Nov 17 2014

    Acche din for indian workers ahead...
    Jai ho Modiji.

    DisAgree [48] Agree [43] Reply Report Abuse


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